commiss recommend novemb qualiti assur statutori audit european union minimum requir notifi document number text eea relev ec commiss european commun regard treati establish european commun articl indent thereof council direct eec april base articl eec treati approv person respons carri statutori audit account document lai requir person allow carri statutori audit qualiti assur statutori audit fundament ensur good audit qualiti good audit qualiti impli ad credibl publish financi inform ad protect sharehold investor creditor stakehold qualiti assur profess princip mean assur public regul auditor audit firm perform level meet establish audit standard ethic rule qualiti assur profess encourag qualiti improv audit opinion european union give minimum level assur reliabl financi inform argu member state measur ensur statutori auditor carri statutori audit subject qualiti assur system qualiti assur european union phenomenon reflect fact member state implement recent member state qualiti assur system januari current nation qualiti assur system differ aspect scope qualiti review mandatori voluntari cycl coverag exist public report differ make difficult assess nation qualiti assur system meet relev minimum requir moment internation accept standard defin minimum requir qualiti assur benchmark nation qualiti assur system scope initi qualiti assur eu statutori audit profess aim set benchmark member state qualiti assur system european union definit minimum requir complement form extern control statutori audit function carri supervisori author stock exchang regul sector specif regul object improv qualiti statutori audit addit qualiti control statutori audit discret member state issu qualiti assur address commiss green paper role posit liabil statutori auditor european union support council econom social committe european parliament commiss commun quot statutori audit european union forward quot eu committe audit establish decid put qualiti assur prioriti agenda discuss show agreement member state place system qualiti assur statutori audit abovement commun intent work harmonis improv qualiti statutori audit prefer prepar legisl issu commiss recommend recommend bring desir harmonis qualiti assur commiss reconsid legisl effect commiss intend review situat year adopt recommend commiss conclus lisbon european council issu commun quot financi report strategi forward quot underlin import statutori audit carri uniformli high level european union gener agreement eu committe audit contact committe account direct minimum requir recommend recommend qualiti assur system member state european union meet minimum requir coverag qualiti assur regim member state measur ensur person carri statutori audit subject qualiti assur system term person relat eighth direct defin rule approv person carri statutori audit statutori auditor person european union carri statutori audit subject system qualiti assur methodolog peer review monitor accept methodolog qualiti assur essenti methodolog qualiti assur appli european union monitor peer review monitor refer situat staff emploi profession bodi regul manag qualiti assur system carri qualiti assur review peer review refer situat activ member quot peer quot carri review visit monitor peer review consid methodolog equal statur case care ensur qualiti review object adequ measur ensur review date knowledg audit standard qualiti control system point relev monitor methodolog appli concern review object mitig suffici public supervis administr function qualiti assur system present result point import peer review methodolog review coverag select reviewe subject qualiti review statutori auditor audit firm individu auditor point member state requir joint audit situat start point select subject qualiti review individu statutori audit assign statutori auditor subject qualiti review remain statutori auditor select statutori auditor review made consist basi ensur coverag statutori auditor predetermin period provid full coverag statutori auditor ensur predetermin period time annual select statutori auditor review made risk basi base natur client portfolio turnov audit relat total turnov result previou review random basi combin method case multi offic audit firm optim unit size qualiti review offic qualiti assess multi offic audit firm includ adequ coverag offic larger audit firm firm wide control polici procedur ensur degre uniform individu offic appli norm standard differ consid offic subject qualiti assur review cycl achiev full coverag statutori auditor maximum year current eu system qualiti assur achiev full coverag cycl vari year year accord differenti point cycl full coverag shorten statutori auditor quot public interest entiti quot client statutori auditor audit small low risk entiti accept cycl review extend maximum year case obtain regular inform statutori auditor confirm natur client portfolio chang significantli cycl shorten statutori auditor previous review satisfactori result situat outcom qualiti review gener satisfactori recommend improv effect follow implement specif recommend carri comprehens qualiti review scope qualiti review qualiti assur relat statutori audit financi statement carri statutori auditor public practic scope qualiti review includ assess intern qualiti control system audit firm suffici complianc test procedur audit file verifi adequ function member state requir audit firm implement intern qualiti control line intern standard audit quot qualiti control audit work quot addit black letter paragraph isa establish member state level specif requir intern qualiti control statutori auditor underpin qualiti review addit requir base qualiti control procedur mention point isa deal object intern qualiti control system audit firm scope qualiti review includ subject test individu audit file qualiti evid audit work paper basi assess qualiti audit work complianc audit standard complianc ethic principl rule includ independ rule audit report format type opinion complianc financi statement financi report framework refer audit report failur mention complianc financi statement legal requir refer audit report statutori audit carri complianc legal requir establish audit standard respect ethic rule crucial user audit financi inform ensur level credibl audit financi statement specif requir laid audit report import public product statutori audit complianc financi report framework includ underlin instrument role statutori audit enforc account standard differenti methodolog consid differenti approach qualiti assur statutori auditor public interest entiti client qualiti assur public interest entiti client differenti relat systemat aspect qualiti assur higher frequenc coverag increas public oversight manag qualiti assur possibl access file review compet author point differenti alter scope object methodolog individu qualiti review term quot public interest entiti quot includ list compani credit institut insur compani invest firm ucit undertak collect invest transfer secur pension fund regul compet author ultim respons administr maintain qualiti assur system access individu file review prepar statutori auditor public interest entiti client access file review subject confidenti provis outlin point public oversight public report qualiti assur system adequ public oversight consist major practition overview board qualiti assur system qualiti assur system european union credibl satisfi extern object sustain public confid demonstr regul adequ discharg regul respons public oversight requir meant ensur qualiti assur fact appear exercis suffici public integr actual organis public oversight qualiti assur differ member state depend exist structur supervis statutori audit profess import sector specif regulatori monitor statutori audit qualiti public oversight qualiti assur quot add quot exist supervis structur audit profess involv public particip whilst situat requir separ committe includ profession repres busi repres secur regul repres sharehold object public oversight qualiti assur includ supervis manag plan control qualiti assur system evalu review result approv public report result qualiti assur point result qualiti assur adequ publish public qualiti assur result mean ad public credibl qualiti assur system public aggreg result qualiti assur name individu audit firm consid adequ public credibl enhanc report includ recommend profession regulatori action follow recommend sanction disciplinari sanction systemat link neg outcom qualiti review initi sanction disciplinari system disciplinari system includ possibl remov statutori auditor audit regist qualiti assur tool disciplinari sanction qualiti assur aim enforc demonstr improv audit qualiti link qualiti review disciplinari sanction ad public credibl logic qualiti assur enforc tool possibl remov regist relev countri registr certifi auditor separ profession bodi carri qualiti assur system confidenti statutori auditor exempt confidenti claus audit file client qualiti assur review member state qualiti assur system exempt hand audit work file review normal rule auditor confidenti impli hand audit file review breach confidenti lead liabil action review subject confidenti rule similar statutori auditor compli give regul compet author access file review point constitut breach confidenti member state qualiti assur system includ rule confidenti review ident confidenti rule statutori auditor compli perform statutori audit provid person work work relev regul compet author respons administr maintain qualiti assur system member public oversight board bound oblig profession secreci ultim depend nation legisl profession secreci context impli person concern divulg confidenti inform receiv duti person author whatsoev save summari aggreg form review statutori auditor subject qualiti review audit client review file relat relat parti audit client individu identifi qualiti review qualiti assur system ensur person peer employe monitor organis carri qualiti review profession educ relev experi combin specif train qualiti assur review countri profession activ public practic appoint peer review relev experi relat sector specif experi independ object review qualiti assur system ensur select review individu review assign conflict interest adequ account review subject independ requir applic statutori auditor select review individu qualiti review base criteria ensur review independ object fact appear actual applic select criteria review monitor public oversight board resourc adequ resourc input alloc qualiti assur system order give realist impact light public credibl clear qualiti assur system cost monei effici effect order fulfil realist requir public regul system qualiti assur appli hand statutori auditor european union effect level plai field competit area appar differ resourc qualiti assur meaning comparison total resourc relat number statutori audit take account lack public interest entiti client statutori auditor point full cycl coverag public resourc alloc extern qualiti assur add public credibl final provis recommend address member state brussel novemb commiss frederik bolkestein member commiss oj oj oj final june