13 OCT 2010
By Ben Moshinsky | Bloomberg
Listed companies may lose the right to choose their auditors under European Union proposals to bolster investors’ confidence in financial information in the wake of the economic crisis.
Regulators may get powers over the “appointment, remuneration and duration” of listed-companies’ auditors, the European Commission said. The aim is to ensure auditors serve shareholders rather than their client companies, the EU agency said as it sought views on possible measures to overhaul auditing rules in the 27-nation bloc.
“The veracity of financial statements is central to confidence in the marketplace,” Michel Barnier, the EU’s financial services commissioner, said in an e-mailed statement today. “Auditors have an important role to play and that is why we need robust and completely independent audits.”
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