RSM International, the sixth largest global accountancy network, today responded to the eagerly awaited proposals on the reform of auditing in the EU. The draft legislation contains a raft of measures aimed at increasing competition and improving quality of the services provided.
Commenting on the proposals, Jean Stephens, CEO of RSM International said:
“We are of course considering the proposals on audit market reform as announced by the Commission this morning and we are encouraged that the Commission recognises that the creation of a more dynamic audit market is necessary.
We believe a package of measures is essential as no one single measure would adequately address the quality and competition concerns raised by the Commission and stakeholders in the Green Paper and during the stakeholder consultation process.
We have concerns that the initial proposals have already been weakened, particularly with regard to mandatory joint audit and whilst we agree with mandatory rotation of audit firms in principle, we are also concerned that rotation every six years is too aggressive.
Our focus must remain on providing a framework for the highest standards of audit quality to benefit investors and other key stakeholders.
RSM International will continue to be active in this process and will conduct a careful analysis of the proposals and their collective impact on the audit market, taking account of the needs of investors, public interest and the profession.
Today’s announcement marks the start of the democratic debate and, once we have analysed the proposals in detail, RSM International will continue to argue strongly for a package of practical and pragmatic solutions to improve quality and competition in the audit market.”