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Recent amendments to the 8th EU Company Law Directive on how annual financial statements should be prepared and how the audit market is to be reformed could have wide-ranging implications for corporate governance, risk management and internal audit.
"Companies have to be prepared for the additional transparency, extra reporting requirements and responsibilities the Directive now requires", says Thijs Smit. "We are working with FERMA to produce guidance to executive management and boards about what it means to them."
These changes fall on the shoulders of boards of directors and audit committees under Article 41 of the 8th Directive.
The ECIIA and FERMA working group will also be looking at how national governments of the region’s 28 countries have transposed the Directive into law and identifying any discrepancies in their interpretation of its provisions.