Brussels proposed to tighten the rules on audit firms and remove the right of companies to choose who monitors their accounts to increase transparency.
Barnier said that the Commission aims to give regulators the power to define "selection, remuneration and duration" of contracts for the audits, a sector dominated by so-called Big Four (Deloitte, Ernst & Young, KPMG and Pricewaterhouse Coopers).
Barnier has put forward the following questions: "Is it normal that the same companies are both auditing and consulting firms? This accumulation does not cause confusion and conflict of interest? It is healthy that these companies keep the same customers for decades and are the customers who choose and pay their audit?". The Commission Green Paper will look at all these issues, Barnier announced.
The consultation will be open until 8 December. The Commission will then analyze the results and present legislative proposals to regulate the audit sector at the end 2011.
© European Commission
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