Activities of Antonio MASIP HIDALGO related to 2011/0359(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on specific requirements regarding statutory audit of public-interest entities PDF (1 MB) DOC (1 MB)
Amendments (36)
Amendment 155 #
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
1. A statutory auditor or a key audit partner who carries out a statutory audit of a public-interest entity on behalf of an audit firm shall not, before a period of at least twofive years has elapsed since he or she resigned as a statutory auditor or key audit partner from the audit engagement, take up any of the following duties:
Amendment 164 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. 2. When the statutory auditor or audit firm provides to the audited entity related financial audit services, as referred to in Article 10(2), the fees for such services, other than fees for such of those services which are required by law, shall be limited to no more than 105 % of the fees paid by the audited entity for the statutory audit. In case of joint audit, every audit firm will be allow to provide related financial audit services up to a limit of 20% of the total turnover of the audit services.
Amendment 180 #
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
A statutory auditor or an audit firm carrying out statutory audit of public- interest entities may provide to the audited entity, to its parent undertaking and to its controlled undertakings statutory audit services and related financial audit services, as far as they do not affect its independence.
Amendment 214 #
Proposal for a regulation
Recital 24
Recital 24
(24) It is also important that the role of the audit committee in the selection of a new statutory auditor or audit firm be reinforced, for the benefit of a more informed decision of the general meeting of shareholders or members of the audited entity. Hence, when making a proposal to the general meeting, the board should explain whether it follows the recommendation of the audit committee and, if not, why. The recommendation of the audit committee should include at least two possible choices for the audit engagement and a duly justified preference for one of them, so that the general meeting can make a real choice. In order to provide a fair and proper justification in its recommendation, the audit committee should use the results of a mandatory selection procedure organised by the audited entity, under the responsibility of the audit committee. In such selection procedure, the audited entity should invite statutory auditors or audit firms, including smallernon-dominant ones, to present proposals for the audit engagement. Tender documents should contain transparent and non- discriminatory selection criteria to be used for the evaluation of proposals. Considering, however, that this selection procedure could entail disproportionate costs for companies with reduced market capitalisation or small and medium-sized public-interest entities having regard to their dimension, it is appropriate to relieve such entities from this obligation.
Amendment 221 #
Proposal for a regulation
Recital 26
Recital 26
(26) The appointment of more than one statutory auditor or audit firm by the public-interest entities would reinforce the professional scepticism and contribute to increasing audit quality. Also, this measure combined with the presence of smallernon- dominant audit firms would facilitate the development of the capacity of such firms, thus contributing to increasing the choice of statutory auditors and audit firms for public-interest entities. Therefore, the latter should be encouraged and incentivised to appoint more than one statutory auditor or audit firm to carry out the statutory audit.
Amendment 246 #
Proposal for a regulation
Article 2 – paragraph 1 – point b a (new)
Article 2 – paragraph 1 – point b a (new)
(ba) Member States may exempt public interest entities which have not issued transferable securities admitted to trading on a regulated market within the meaning of point 14 of Article 4(1) of Directive 2004/39/EC and their statutory auditor(s) or audit firm(s) from one or more of the requirements of this regulation.
Amendment 252 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
(1a) Where a cooperative within the meaning of Article 2(14) of Directive 2006/43/EC, a savings bank or a similar entity as referred to in Article 45 of Directive 86/635/EEC, a subsidiary or a legal successor of a cooperative, a savings bank or a similar entity as referred to in Article 45 of Directive 86/635/EEC is required or permitted under national provisions to be a member of a non-profit- making auditing entity, an objective, reasonable and informed party would not conclude that the membership-based relationship compromises the statutory auditor's independence, provided that when such an auditing entity is conducting a statutory audit of one of its members, the principles of independence laid down in this Chapter are applied to the auditors carrying out the audit and those persons who may be in a position to exert influence on the statutory audit.
Amendment 268 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. When the statutory auditor or audit firm provides to the audited entity related financial audit services, as referred to in Article 10(2), the fees for such services, other than fees for such of those services which are required by law, shall be limited to no more than 105% of the fees paid by the audited entity for the statutory audit. In case of joint audit, every audit firm will be allow to provide related financial audit services up to a limit of 20% of the total turnover of the audit services.
Amendment 276 #
Proposal for a regulation
Article 9 – paragraph 3 a (new)
Article 9 – paragraph 3 a (new)
3a. Where Article 37 (2) of Directive 2006/43/EC applies paragraph 2 and 3 of this Article shall not apply.
Amendment 313 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – introductory part
Article 10 – paragraph 3 – subparagraph 3 – introductory part
For the purposes of this Article, non-audit services shall mean: expert services unrelated to the audit, general management and other advisory services such as:
Amendment 320 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point i
Article 10 – paragraph 3 – subparagraph 3 – point a – point i
(i) expert services unrelated to the audit, tax consultancy, general management and other advisory servicestax consultancy;
Amendment 325 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv
(iv) valuation services, providing fairness opinions or contribution-in-kind reports, where the valuation would have a material effect, separately or in the aggregate, on the financial statements;
Amendment 333 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
(vi) designing and implementing financial information technology systems for public- interest entities as referred to in Article 2(13)(b) to (j) of Directive 2006/43/EC;
Amendment 340 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
(viii) broker or dealer, investment adviser, or investment banking servicespreparing, promoting, dealing in or underwriting shares in the audit client.
Amendment 357 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
(i) human resources services, including recruiting senior management in a position to exert significant influence over the preparation of the accounting records or financial statements subject to the statutory audit;
Amendment 364 #
Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 2
Article 31 – paragraph 1 – subparagraph 2
At least onll the members of the audit committee shall have competence in auditing and another member in accounting and/or audiin accounting. The committee members as a whole shall have also competence relevant to the sector in which the audited entity is operating.
Amendment 425 #
Proposal for a regulation
Article 16 – paragraph 5 – subparagraph 1 – point c
Article 16 – paragraph 5 – subparagraph 1 – point c
(c) an audit plan setting out the probable scope and method of the statutory audit; and, where more than one statutory auditor or audit firm have been appointed, the distribution of tasks among the appointed statutory auditors or audit firms and the rotation plan established in accordance with Article 33(1).
Amendment 438 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 3
Article 33 – paragraph 1 – subparagraph 3
The maximum duration of the combined two engagements shall not exceed 67 years.
Amendment 444 #
Proposal for a regulation
Article 22 – paragraph 2 – point h
Article 22 – paragraph 2 – point h
(h) describe the used methodology, including how much of the balance sheet has been directly verified and how much has been based on system and compliance testing;the aim of the audit and its degree of reliability.
Amendment 445 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Where throughout a continuous engagement of 67 years two statutory auditors or audit firms have been appointed, the maximum duration of the engagement of each statutory auditor or audit firm shall not exceed 914 years.
Amendment 445 #
Proposal for a regulation
Article 22 – paragraph 2 – point l
Article 22 – paragraph 2 – point l
(l) provide a statement on the situation of the audited entity or, in case of the statutory audit of consolidated financial statements, of the parent undertaking and the group, especially an assessment ofincluding ratios to assess the entity's or the parent undertaking's and group's ability to meet its/their obligation in the foreseeable future and therefore continue as a going concern;
Amendment 466 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 4
Article 23 – paragraph 1 – subparagraph 4
The additional report shall be disclosed to the general meeting of the audited entity if the management or administrative body of the audited entity so decides.
Amendment 474 #
Proposal for a regulation
Article 23 – paragraph 2 – point e
Article 23 – paragraph 2 – point e
(e) describe the distribution of tasks among the statutory auditor(s)s and/or the audit firm(s);, and the rotation of those tasks individually allocated pursuant to Article 33(1).
Amendment 493 #
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
The audit committee of the public-interest entity shall monitor the work of the statutory auditor(s) or audit firm(s) carrying out the statutory audit, and, when more than one statutory auditor or audit firm have been appointed, the distribution of tasks between them and their rotation.
Amendment 523 #
Proposal for a regulation
Article 31 – paragraph 5 – point c
Article 31 – paragraph 5 – point c
(c) monitor the statutory audit of the annual and consolidated financial statements and supervise the completeness and integrity of the draft audit reportpoints related to the audit development process in accordance with Articles 22 to 23;
Amendment 530 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 1
Article 32 – paragraph 1 – subparagraph 1
For the purposes of the application of Article 37 (1) of Directive 2006/43/EC, for the appointment of statutory auditors or audit firms by public-interest entities, the conditions set out in paragraphs 2 to 56 of this Article shall apply.
Amendment 531 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 2
Article 32 – paragraph 1 – subparagraph 2
Where Article 37(2) of Directive 2006/43/EC applies, the public-interest entity shall only inform the competent authority of the use of the alternative systems or modalities referred to in that Article; in this case paragraphs 2 to 6 of this Article shall not apply.
Amendment 553 #
Proposal for a regulation
Article 32 – paragraph 5 – subparagraph 2 a (new)
Article 32 – paragraph 5 – subparagraph 2 a (new)
Where more than one statutory auditor or audit firm have been appointed, the public-interest entity shall apply the procedure referred to in paragraph 3 at least every other renewal.
Amendment 579 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 3
Article 33 – paragraph 1 – subparagraph 3
The maximum duration of the combined two engagements shall not exceed 67 years.
Amendment 593 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Where throughout a continuous engagement of 67 years two statutory auditors or audit firms have been appointed, the maximum duration of the engagement of each statutory auditor or audit firm shall not exceed 9 years12 years, unless a rotation of tasks individually allocated to each of the statutory auditors or audit firms has been implemented within a maximum period of 5 years, in which case an extra period of 5 years is allowed.
Amendment 598 #
Proposal for a regulation
Article 33 – paragraph 1 a (new)
Article 33 – paragraph 1 a (new)
1 a. For the purposes of the application of Article 37 (1) of Directive 2006/43/EC, for the appointment of statutory auditors or audit firms by public-interest entities, the conditions set out in paragraphs 2 to 7 shall apply. Where Article 37 (2) of Directive 2006/43/EC applies paragraphs 2 to 4 of this Article shall not apply.
Amendment 615 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
3. By way of derogation from paragraphs 1 and 2, on an exceptional basis the public- interest entity may request the competent authority referred to in Article 35(1) to grant an extension to re-appoint the statutory auditor or audit firm for an additional engagement. In case of appointment of two statutory auditors or audit firms, this third engagement shall not exceed three years. In case of appointment of one statutory auditor or audit firm, this third engagement shall not exceed two years.
Amendment 626 #
Proposal for a regulation
Article 33 – paragraph 6 – subparagraph 1
Article 33 – paragraph 6 – subparagraph 1
ESMA or the Commission shall develop draft regulatory or implementing technical standards to specify technical requirements on the performance of statutory audits by more than one statutory auditor or audit firm including the balanced allocation of tasks among the statutory auditors or audit firms, the rotation of tasks referred to in paragraph 1, the independence of key audit partners and the most senior personnel involved in the statutory audit when rotation occurs, and the content of the handover file referred to in paragraph 65.
Amendment 667 #
Proposal for a regulation
Article 40 – paragraph 5 – subparagraph 1 – point b
Article 40 – paragraph 5 – subparagraph 1 – point b
(b) adequate compliance testing of procedures and a review of audit files of public interest entities in order to verify the effectiveness of the internal quality control system, including appropriate implementation of the provisions of Article 33(1), in particular regarding the rotation of tasks;
Amendment 736 #
Proposal for a regulation
Article 70 – paragraph 2 a (new)
Article 70 – paragraph 2 a (new)
2 a. By derogation from Articles 32 and 33 and by derogation from paragraphs 1 and 2, if more than one statutory auditor or audit firm have been appointed after [the date of entry into force of the Regulation], the following requirements shall apply for a period of 6 years: (a) individually allocated tasks to one of the statutory auditor or audit firm shall not initially be less than 20% of the total individually allocated tasks; (b) mandatory rotation of individually allocated tasks as referred to in Article 33(1) shall cover at least 60% of the total of the individually allocated statutory audit work.
Amendment 737 #
Proposal for a regulation
Article 70 – paragraph 2 b (new)
Article 70 – paragraph 2 b (new)
2 b. By derogation from paragraph 1 and 2, where more than one statutory auditor or audit firm have been appointed, the tendering procedure as referred to in Article 32(3) shall apply after [the date of entry into force of the Regulation] at least every other renewal.