|
|
There was an “expectation gap as to what the role of the auditor is between the firms and their regulators about how much responsibility auditors should have for detecting fraud", said Dennis Nally.
He also questioned whether the European Commission’s proposed reforms would increase the quality of audits: “When you have major proposals like this coming from one part of the world that aren’t coming from other parts of the world, you have to ask what impact is that going to have on the competitiveness of Europe”, Mr Nally said.
His statements came after the leaking of a draft regulation produced by Michel Barnier, the Commission’s internal market commissioner, which proposed forcing the “Big Four” firms to dispose of their fast-growing consultancy businesses and share work with smaller peers. The reforms would also make companies change their auditor at least every nine years.
Full article (FT subscription needed)