FESE Members recognise the need to work towards the convergence of international standards and the equivalence of requirements for audit firms in order to foster fair and orderly markets and consider this a great opportunity for the EU to set a global trend in this specific subject. Nevertheless, this process should not lead to excessive and burdensome requirements that would make EU markets less attractive to 3rd country issuers.
Moreover, EU companies and EU audit firms should not be disadvantaged by a more stringent framework than 3rd country issuers and audit firms.
One of the main advantages of the EU approach to auditors oversight is that is principle-based. In order to provide an incentive for 3rd countries to develop a principle–based public oversight similar to that of the EU, FESE believes that the Commission should consider transitional measures for such countries.
To address the above issues, FESE is supportive of the proposal of introducing comitology measures and would also strongly favour the evolution of the EGAOB into a CESR-type Level 3 Committee over time.
Response to the Commission’s Consultation on the Implementation of the Directive on Statutory Audit
