Europe Mulls PCAOB-Like Body

Looking for ways to raise the bar on auditor oversight across Europe, the European Union is considering the development of a European Coordination Auditing Oversight Board (ECAOB), according to today's Financial Times.

The Federation des Experts Comptables Europeens (FEE), the accounting profession's European representative body, is driving the effort to create an oversight board for the European Union's 15 member states.

"At regular intervals, the ECAOB should review the effectiveness of member states' . . . oversight systems. The results of the review should be reported to the European Commission and published at regular intervals. Recommendations for any necessary improvement should be made on this occasion," the FEE said in a statement.

Such a board would raise the level of coordination between countries and provide a forum for exchange of information on best practices in auditing in Europe.

More importantly, an ECAOB organization may also thwart efforts of the U.S. regulator, the Public Company Accounting Oversight Board, from scrutinizing auditors in Europe who are involved with audits of U.S. listed companies. The authority of the PCAOB outside the United States has been a point of contention for months as the U.S. regulator seeks to set the bar for auditors and ensure that everyone is in compliance. Non-U.S. regulatory bodies have complained about threats to sovereignty and have been very vocal in their desire to cooperate but not be subject to the regulations of the U.S. board.

You may like these other stories...

As the volume of account reconciliations continues to surge, most corporate accounting and finance departments in the United States and Canada are still using a labor-intensive process to make sure their accounts’...
The average starting salary for students graduating this year with a business major – including accounting – has declined slightly over the last year, according to the latest salary survey from the National...
No matter how much we may want to put them on hold, we all have projects at work we need to start, right? Well, according to a recent survey of human resources (HR) managers by Accountemps, the most productive day of the...

Upcoming CPE Webinars

Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.