Corporate Sector Accounting and Auditing in the EU Acquis Communautaire, 3rd Edition [electronic resource]
- Washington, D.C. : The World Bank, 2016.
- 1 online resource (1 p.)
- Other papers .
- Other papers World Bank e-Library. .
This report reflects significant changes in European Union (EU) corporate financial reporting since 2011. In June 2013, a new accounting directive was adopted, replacing the fourth and seventh directives on company law. A directive amending the 2006 audit directive and a new audit regulation addressing oversight of the most significant audits were adopted in April 2014. The new legislation, summarized in this guide, is a result of several years of drafting and discussions following the financial crisis of 2008 and it represent a landmark in the EU's efforts to strengthen its corporate sector accounting and auditing. The accounting directive seeks to enhance the quality of financial reporting and expand it, especially with regard to public interest entities, while reducing the administrative burden for smaller companies. The new audit reporting requirements introduced by the regulation are expected to increase the usefulness of statutory audits of public interest entities, such as listed companies, credit institutions, and insurance undertakings, and reduce risks of excessive familiarity between statutory auditors and their clients, encourage professional skepticism, and limit conflicts of interest. The audit directive and the regulation will bring more consistency in audit oversight and quality assurance systems across Europe. Implementation will involve significant challenges and require increased resources to ensure systems function effectively.
10.1596/24427
Accounting
Arbitrage
Bank Accounts
Banking Sector
Capital Markets
Capital Requirements
Competitiveness and Competition Policy
Contracts
Corporate Governance
Corporate Law
Credibility
Debt
Default
Equity
Finance
Finance and Financial Sector Development
Financial Crisis
Financial Institutions
Financial Management
Financial Regulation & Supervision
Financial Stability
Fraud
Human Resources
Income Tax
Inflation
Insurance
Law and Development
Legal Framework
Living Standards
Loans
Market Economy
Private Sector Development
Risk Management
Securities
Small Businesses
Trade Liberalization
Transparency
Treaties
This report reflects significant changes in European Union (EU) corporate financial reporting since 2011. In June 2013, a new accounting directive was adopted, replacing the fourth and seventh directives on company law. A directive amending the 2006 audit directive and a new audit regulation addressing oversight of the most significant audits were adopted in April 2014. The new legislation, summarized in this guide, is a result of several years of drafting and discussions following the financial crisis of 2008 and it represent a landmark in the EU's efforts to strengthen its corporate sector accounting and auditing. The accounting directive seeks to enhance the quality of financial reporting and expand it, especially with regard to public interest entities, while reducing the administrative burden for smaller companies. The new audit reporting requirements introduced by the regulation are expected to increase the usefulness of statutory audits of public interest entities, such as listed companies, credit institutions, and insurance undertakings, and reduce risks of excessive familiarity between statutory auditors and their clients, encourage professional skepticism, and limit conflicts of interest. The audit directive and the regulation will bring more consistency in audit oversight and quality assurance systems across Europe. Implementation will involve significant challenges and require increased resources to ensure systems function effectively.
10.1596/24427
Accounting
Arbitrage
Bank Accounts
Banking Sector
Capital Markets
Capital Requirements
Competitiveness and Competition Policy
Contracts
Corporate Governance
Corporate Law
Credibility
Debt
Default
Equity
Finance
Finance and Financial Sector Development
Financial Crisis
Financial Institutions
Financial Management
Financial Regulation & Supervision
Financial Stability
Fraud
Human Resources
Income Tax
Inflation
Insurance
Law and Development
Legal Framework
Living Standards
Loans
Market Economy
Private Sector Development
Risk Management
Securities
Small Businesses
Trade Liberalization
Transparency
Treaties