Task:
The framework of EU audit reform was agreed in December 2013.
The general objective of the EU's audit reform is to 'Contribute to the efficient functioning of financial and non-financial markets by strengthening the market role of the audit profession to provide relevant economic agents and the market with more reliable, transparent and meaningful information, at an acceptable cost, about the veracity of financial statement of companies.'
Michel Barnier, the EU's internal markets commissioner, said the deal marked a "first step" toward boosting confidence in audit quality.
"Although less ambitious than initially proposed by the commission, landmark measures to strengthen the independence of auditors have been endorsed, particularly in the auditing of financial institutions and listed companies," Mr Barnier said.
Task:
Write an essay to answer the question 'how does the recently agreed EU Audit reform (December 2013) meet the objectives in providing audited financial statements which are independent and reliable?'
Part one:
Identify and describe the EU Audit Reform of December 2013. Explain how the reform will ensure the market will be provided with 'more reliable, transparent and meaningful information.'
Part two:
Critically evaluate whether or not the reforms will address the problems of independence and The framework of EU audit reform was agreed in December 2013.
The general objective of the EU's audit reform is to 'Contribute to the efficient functioning of financial and non-financial markets by strengthening the market role of the audit profession to provide relevant economic agents and the market with more reliable, transparent and meaningful information, at an acceptable cost, about the veracity of financial statement of companies.'
Michel Barnier, the EU's internal markets commissioner, said the deal marked a "first step" toward boosting confidence in audit quality.
"Although less ambitious than initially proposed by the commission, landmark measures to strengthen the independence of auditors have been endorsed, particularly in the auditing of financial institutions and listed companies," Mr Barnier said.
Task
Write an essay to answer the question 'how does the recently agreed EU Audit reform (December 2013) meet the objectives in providing audited financial statements which are independent and reliable?'
Part one:
Identify and describe the EU Audit Reform of December 2013. Explain how the reform will ensure the market will be provided with 'more reliable, transparent and meaningful information.'
Part two:
Critically evaluate whether or not the reforms will address the problems of independence and reliability of the audited financial statements.