The New European Directive focus on quality assurance

Author:Chas Ray CHOWDHURY, ACCA

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Keywords:control independence, integrity, system funding, planning, conflict of interest, fees, education

Abstract:
As far as concern the new Eighth Directive, it is for the first time when the financial auditors from the entire European Union will be subject of the external oversight activities. The provisions of the Directive are intended to continue to act at the level of quality and compliance with the ethical standards they are expected to apply in their activity. There is already an international standard on quality control, which should be applied by all IFAC members. \r\n\r\nFor most of the countries, the new Directive points out for the first time the need for quality assurance. We discuss here about individual standards, but the Directive does not mention in detail how each country should apply a standard. The Directive is for guidance purposes, it is a framework that Member States can adopt and can develop it further in accordance with every country specific. The Directive discusses about independence of the quality assurance system, which should be untouchable, not influenced by any auditor or audit firm. \r\n\r\nWe must be very sure that the quality assurance system in our country, in other Member States, is organized in such a manner that it is untouchable and has an impact at the level of the whole country. The quality assurance system should be overseen by an oversight body, which is formed of the audit professional bodies.

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