-Recent high profile international business failures have seen concerns raised regarding the current state of corporate governance and financial reporting in Europe. With this position paper European Federation of Accountants (FEE) is highlighting the essential issues for the accountancy profession at the centre of the current debate.
The key areas in the debate concern: financial reporting standards; enforcement of standards and corporate governance; auditing standards and quality assurance; ethical standards and independence; oversight of the profession; and auditor liability (protection from catastrophic loss disproportionate to auditor responsibility).
Although this FEE paper focuses on the accounting and auditing professions’ commitment to high quality financial reporting, all major influences on the quality of financial reporting should be considered, including the role of other professions and regulators.
FEE believes that there is a need to strengthen corporate governance arrangements so that they are equally effective across Europe; corporation directors, audit committees and supervisory boards have a key role to play. Others in this debate include enforcement bodies, stock exchanges, sponsors, investment bankers, investors, analysts, rating agencies and the financial press.
FEE believes that among others action is needed in:
Ensuring that the European Financial Reporting Advisory Group, (EFRAG) makes a significant impact in providing a European contribution to the international financial reporting standard setting process (IFRS and IFRIC);
Ensuring effective enforcement of IFRS in Europe by 2005;
Defining at EU level harmonised conditions for organising the public oversight of the auditing profession in the EU Member States.
Press release
Position Paper: The Role of Accounting and Auditing in Europe
© FEE
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