Impact of audit reform on audit committees in Europe
The Federation of European Accountants (FEE) briefing paper The impact of the audit reform on audit committees in Europe highlights the developing role of the audit committee in Europe and provides an overview of the related changes to corporate governance best practice.
The paper also provides for a number of FEE recommendations. For the sake of completeness these recommendations have been summarised at the end of the paper.
The impact of the audit reform on
audit committees in Europe
The latest EU audit reform has expanded the audit committee’s role substantially. The audit committee is now instrumental in strengthening confidence in the statutory audit and in financial information as a whole. Overall, the audit committee is expected to become a key factor within the corporate governance framework of EU Member States.
As the deadline for transposing the legislation is getting closer (16 June 2016), a high level of co-ordination amongst all stakeholders (board and audit committee members, audited company management, shareholders, and auditors) will facilitate achieving the desired outcomes. Working towards consistent functioning of audit committees across Europe remains crucial in order to achieve the desired outcomes.
ICAS is a contributing member of the FEE.
FEE (Federation of European Accountants) is an international non-profit organisation based in Brussels that represents 50 institutes of professional accountants and auditors from 37 European countries, including all of the 28 EU member states. FEE has a combined membership of more than 875,000 professional accountants, working in different capacities in public practice, small and large accountancy firms, businesses of all sizes, government and education – all of whom contribute to a more efficient, transparent and sustainable European economy.