Showing posts from November, 2008

Audit firms : Commission consults on ways to help create more market players

Internal Market and Services Commissioner Charlie McCreevy said : "European capital markets have become much more integrated in the last few years. However, the European Union seems to face fragmented audit markets. In order to ensure a sustainable international audit market, more players are needed to meet the demand by international companies. This is especially true in the light of the current financial turmoil, which might also contribute to widening the existing gap between the Big 4 and the mid-tier audit firms. We all need to think of how to bring new capital into the audit profession. Some have suggested that we should do away with ownership restrictions in audit firms and allow other players - not only audit partners - to invest in an audit firm. Audit firms fear that such relaxation could reduce the quality of audits and pose a risk to auditor independence. I want to hear more about both sides of the argument.. I encourage all those who have a view or experience in this