EC criticised for approach to auditor liability
The International Corporate Governance Network (ICGN), who represent almost £7.5 trillion in assets have sent a letter to the EC calling for a review of European audit services. The letter is in response to the EC’s recommendation in June to cap auditor’s liability.
The letter was addressed to Charlie McGreevy and Neelie Kroes, international market commissioner and competitions commissioner respectively. It urges the commission to ‘step up its efforts to ensure that the market for audit services in Europe, especially to large listed entities, becomes more competitive and more focused on audit quality.’
The ICGN also called on the EC to follow the lead of the US and UK at building ‘a better understanding of the competitive dynamics of the market for audit services in Europe and their relation with audit quality.’
