PwC Nods to Most Areas of European Commission’s Audit Policy

Lucas Gilmore, “Big 4″ observer
January 03, 2011 /

Pricewaterhouse Coopers got on its way to closely examine the areas in European Commission’s Green Paper that covered the audit policy it found worthy of its support.

The audit policy of the Green Paper includes cooperation and two-way communication between the auditors, banking and regulators. Communication between auditors, banks, and regulators would enhance the way audit reports are handed over to authorities, thus helping each of them to discharge their functions effectively, according to PwC.

The accountancy firm has also expressed its support to the audit policy’s key areas covering transparency and accessibility of audit reports to all stakeholders.

The extended report of audit committees would enhance transparency in a company’s financial report and the way auditors would conduct their tasks. The Green Paper on audit policy also enables auditors to give assurance for the risky areas in the company through their extended reporting. The ISAs are also part of the audit policy, which the European Union has adopted.

Some other possible aspects of the audit policy covering oversight of audit reporting that may need improvement include EU audit regulation through a continued oversight among its members, which PwC believed could strengthen cooperation within the European Union. It also tackles the possible takeover of administration on European passports by auditors and the simplification of the requirements for small- and medium-scale businesses, audit companies and audit practitioners.

PwC, however, did not agree with areas of the audit policy extending restriction on audit firms to include companies that preform non-audit services.

 

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