New Ground Rules For EU Audit Reports

An agreement has been reached on legislation that would change the protocol for audit reports in EU member states. The intent is to increase auditor independence and reduce the risk of auditor conflict of interest. The deal, struck between the member states and the European Parliament, would prohibit restrictive Big Four only third party clauses imposed on companies, and it would require audit firms to be rotated after 10 years, extendable under some circumstances. It would also, among other provisions, prohibit audit firms from providing most non-audit services. Specifically, there would be strict limits on tax and financial strategy consulting.