“Unprecedented” reforms to audit rules in the European Union cleared another hurdle this week, with European Parliament’s Legal Affairs Committee signing off on the compromise deal struck last month by parliament and the Council.
Triggered by the financial collapse, the reforms include mandatory rotation of auditors, higher quality audits, greater transparency, and limits on non-audit services to clients. The Council and European Parliament reached an agreement in principle on the matter in December, and the legal committee approved the compromise package21 Jan., in a 13-8 vote with one abstention.
