FEE hopes Briefing Papers will help to inform policy-makers, legislators, regulators, politicians, preparers and other stakeholders as well as the profession about how these subject matters could be further developed.

(1) In Briefing Paper 'Developing the Role of the Auditor and Auditor’s Communication', FEE outlines its willingness proactively to contribute to developing, in dialogue with all stakeholders, the future role of the auditor as well as auditor’s communication. As far as developing the role of the auditor is concerned, it could be extended to include assurance explicitly on business risks and on forward-looking information in addition to the current focus on past performance. Auditor's communication could benefit from a better alignment of public expectations of audit with audit performance which would involve a clearer articulation of the auditor’s societal role. In this regard we encourage three-way dialogue with auditors, supervisors and the company. Within the audited entity, more regular communication with the auditor could also greatly improve the capacity of its governing bodies to fulfil their oversight role.

 

(2) Briefing Paper 'Appointment of the Auditor' highlights some key aspects related to the appointment of the auditor which encompasses considerations for companies regarding the process of how the auditor is selected prior to commencing the audit work, how many auditors a company selects and how often the company would appoint and/or reappoint its auditor.

 

(3) In Briefing Paper 'Provision of Non-Audit Services to Audit Clients', FEE explains that there are different categories of non-audit services. They should not be treated as a monolithic bloc which endanger the auditor’s independence and thus be prohibited as a whole. Certain services should be prohibited, however. Others are not just permissible but are required to be performed by the auditor. The provision of other services to audit and especially non-audit clients are seen by many to enhance the quality of the audit as well as its effectiveness and efficiency.

 

(4) In Briefing Paper 'European Passport for Auditors and Audit Firms', FEE further explores the idea of a European passport for auditors and for audit firms. The effectiveness of this attractive idea will largely depend on the further harmonisation of essential building blocks such as professional educational requirements, including the aptitude test, the adoption of international standards related to auditing and independence in the EU, the already adopted standards on accounting and a pan-EU supervisory authority on auditing. In addition, further harmonisation will be needed with regard to company law and taxation.

 

(5) Briefing Paper 'Future Supervision of the Audit Profession – Further Cooperation' encourages further integration and cooperation of audit firm supervision at European level. FEE recommends that the EGAOB is transformed into a new Level 3 Committee to achieve much closer cooperation between national oversight authorities. FEE believes that this committee could also consider the establishment of colleges of audit oversight bodies for the oversight of pan-European audit firms whose registration also covers a number of EU Member States.

Press release