IoD criticises proposed EU legislation on auditing

Dated: 30 November 2011

Commenting on proposed EU legislative proposals on auditing unveiled today, Roger Barker, Head of Corporate Governance at the Institute of Directors, said:

“We are glad that Mr Barnier has dropped his earlier plan to require joint audits. But his legislative proposals in respect of auditor rotation and the sale of non-audit services will undermine the ability of audit committees to respond to the specific circumstances of individual companies. They will also increase auditing costs.”

He added:

“In any case, these are issues which should be addressed through national corporate governance codes, not European legislation. Such Europe-wide regulation is a blow to the UK’s corporate governance framework based on ‘comply or explain’.”

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The IoD (Institute of Directors) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with upwards of 45,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
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