120 Amendments of Sharon BOWLES related to 2011/0359(COD)
Amendment 114 #
Proposal for a regulation
Recital 8
Recital 8
(8) Adequate internal organisation of statutory auditors and audit firms should contribute to preventing any threats to their independence. Thus, owners or shareholders of an audit firm, as well as those managing it, should not intervene in the carrying out of a statutory audit in any way which jeopardises the independence and objectivity of the statutory auditor who carries out the statutory audit on behalf of the audit firm. Additionally, statutory auditors and audit firms should establish appropriate internal policies and procedures in relation to employees and other persons involved in the statutory audit activity within their organisations in order to ensure compliance with their statutory obligations. Those policies and procedures should in particular seek to prevent and address any threats to independence and ensure the quality, integrity and thoroughness of the statutory audit. Those policies and procedures should be proportionate in view of the scale and complexity of the business of the statutory auditor or audit firm and the audited entities.
Amendment 115 #
Proposal for a regulation
Recital 11
Recital 11
(11) The provision of services other than statutory audit to audited entities by statutory auditors, audit firms or members of their networks may compromise their independence. Therefore, it is appropriate to require the statutory auditor, the audit firm and the members of their network not to provide non-audit services to their audited entities. The provision ofsafeguards in the form of a prohibition of certain non- audit services by an audit firm to a company would prevent that audit firm from carrying out statutory audit of that company, thus resulting in a reduction of the audit firms available to provide statutory audit, in particular with regard to the audit of large public-interest entities where the market is concentrated. As a result, in order to secure that a minimum number of audit firms is able to provide audit services to large public-interest entities, it is appropriate to request that audit firms of significant dimension focus their professional activity on the carrying out of statutory audit and are not allowed to undertake other services unconnected to their statutory audit function such as consultancy or advisory servicesthe statutory auditor cannot perform to their audited entities, as well as re- tendering, at the behest of the audit committee, of any non-audit service and financial audit related services above a 30% threshold.
Amendment 117 #
Proposal for a regulation
Recital 15
Recital 15
(15) The statutory audit results in an opinion on the truth and fairness of the financial statements of the audited entities. Stakeholders, however, might to be unaware of the limitations of an audit (materiality, sampling techniques, role of the auditor in the detection of fraud and the responsibility of managers), which can lead to an expectation gap. In order to reduce such gap, it is important to provide more clarity on what the scope of the statutory audit is. Therefore, more guidance is needed on a European level for statutory auditors as well as the preparers of accounts in this area, and in particular, to work towards a standardised definition, and usage, of the 'going concern' of a company.
Amendment 118 #
Proposal for a regulation
Recital 19
Recital 19
(19) The results of the statutory audit should be presented to the stakeholders in the audit report. In order to increase the confidence of stakeholders in the financial statements of the audited entity, it is particularly important that the audit report is well-founded and solidly substantiated and its content expanded to include additional information specific to the audit carried out. The audit report should in particular include sufficient information on the methodology used in the audit, especially how much of the balance sheet has been directly verified and how much has been based on system and compliance testing, on the levels of materiality applied to perform the audit, on the key areas of risk of material misstatements of the annual and consolidated financial statements, on whether the statutory audit was designed to detect fraud and, in the event of a qualified or adverse opinion or a disclaimer of opinion, on the reasons for such decision.
Amendment 120 #
Proposal for a regulation
Recital 23
Recital 23
(23) Audit committees, or bodies performing an equivalent function within the audited entity, have a decisive role in contributing to high-quality statutory audit. It is particularly important to reinforce the independence and technical competence of the audit committee by requiring that a majority of its members is independent and that at least one member of the committee has competence in auditing and another one in auditing and/or accounting. Members of the audit committee should take part in skill enhancement programmes to ensure an appropriate level of technical knowledge to fulfil their roles. The Commission Recommendation of 15 February 2005 on the role of non- executive or supervisory directors of listed companies and on the committees of the (supervisory) board26 sets out how audit committees should be established and function. Considering, however, the dimension of boards in companies with reduced market capitalisation and in small and medium-sized public-interest entities, it would be appropriate that the functions assigned to the audit committee for those entities, or to a body performing equivalent functions within the audited entity, may be performed by the administrative or supervisory body as a whole. Public- interest entities which are UCITS or alternative investment funds should also be exempted from the obligation to have an audit committee. This exemption takes into account the fact that where those funds function merely for the purpose of pooling assets, the employment of an audit committee is not appropriate. UCITS and alternative investments funds, as well as their management companies, operate in a strictly defined regulatory environment and are subject to specific governance mechanisms such as controls exercised by their depositary.
Amendment 121 #
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, a comprehensive assessment of both proposals, 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 selectiontender procedure organised by the audited entity, under the responsibility of the audit committee. In such selection a tender procedure, the audited entity should invite statutorypublish a call to auditors or audit firms, including smaller 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 129 #
Proposal for a regulation
Recital 27
Recital 27
(27) In order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms, it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity. AFurthermore, a comprehensive, transparent and independent evaluation of audit quality should be regularly and appropriately documented. This comprehensive assessment should form the basis for the annual auditor selection by the general assembly. The purpose of mandatory tendering for the audit engagement is to not only evaluate the incumbent provider's performance but also the requirements of the audited entity. Furthermore, an appropriate gradual rotation mechanism should also be established with regard to the most senior personnel involved in the statutory audit, including the key audit partners carrying out the statutory audit on behalf of the audit firm. It is also important to provide for an appropriate period within which such statutory auditor or audit firm may not carry out the statutory audit of the same entity. In order to ensure a smooth transition, the former auditor should transfer a handover file with relevant information to the incoming auditor.
Amendment 131 #
Proposal for a regulation
Recital 27 a (new)
Recital 27 a (new)
(27a) There should also be regular and open tendering of the related financial audit services and non-audit services as it provides small and medium-sized statutory auditors, audit firms and non- audit related service providers to present their services and skills in a transparent process and to increase their visibility as service providers for public-interest entities. The incumbent auditor does not necessarily have to perform related financial audit and non-audit services and so the tendering process strongly encourages audit committees to consider a broader range of prospective providers of audit and non-audit services. The purpose of tendering both financial audit related services and non-audit services is to not only evaluate the incumbent provider's performance but also the requirements of the audited entity.
Amendment 135 #
Proposal for a regulation
Recital 33
Recital 33
(33) The market for the provision of statutory audit services to public-interest entities evolves over time. It is therefore necessary that competent authorities and ESMA monitor the developments in the market, particularly as regards possible limited choice of auditor and the risks that arise from high market concentration.
Amendment 136 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) The Proposal for a Regulation of the European Parliament and of the Council on specific requirements regarding statutory audit of public- interest entities envisages that the EU- wide cooperation between competent authorities in respect of the activities of statutory auditors and audit firms that audit the financial statements of public- interest entities would take place within ESMA. Thus ESMA would take over the EU-wide cooperation mechanism that currently takes place under the aegis of the European Group of Auditors' Oversight Bodies (EGAOB), an expert group established and chaired by the European Commission. According to the proposal, ESMA would create a permanent internal committee composed of the competent authorities designated for carrying out the tasks provided for in the draft Regulation. However, auditor public oversight would continue to be carried out at national level. ESMA would be best placed to fulfil the new tasks according to this Regulation in order to ensure an effective and operational cooperation at EU level. The current structure, the EGAOB, cannot ensure supervisory convergence across the Union in respect of auditors conducting audits of public-interest entities that are organised within networks. The EGAOB does not have the power to issue guidelines or even technical standards. The same applies to a Level-3-Lamfalussy-Committee structure where also necessary powers and resources are lacking. An EU-wide cooperation on auditor oversight within ESMA would benefit from the experience and resources of ESMA as ESMA is already working in the field of auditing regarding public-interest entities. ESMA was created on 1 January 2011 and is fully operational. The integration of EU-wide cooperation into ESMA would avoid unnecessary additional costs. Member States would be sufficiently represented and would be part of the decision-making process with ESMA. The Commission shall after a transitional period of X years come back to the European Parliament and the Council with a report where it has ESMA's work and the future role for ESMA. The Commission shall evaluate ESMA has enough resources to fulfil its tasks laid down in this Regulation and propose budget increases if necessary.
Amendment 137 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) The Proposal for a Regulation of the European Parliament and of the Council on specific requirements regarding statutory audit of public- interest entities envisages that the EU- wide cooperation between competent authorities in respect of the activities of statutory auditors and audit firms that audit the financial statements of public- interest entities would take place within ESMA. ESMA would thus take over the EU-wide cooperation mechanism that currently takes place under the aegis of the European Group of Auditors' Oversight Bodies (EGAOB), an expert group established and chaired by the European Commission. ESMA should create a standing committee composed of the competent authorities and supervisors of auditors. However, auditor public oversight would continue to be carried out at national level. ESMA would be best placed to fulfil the new tasks according to this Regulation in order to ensure an effective and operational cooperation at EU level. An EU-wide cooperation on auditor supervision within ESMA would benefit from the experience and resources of ESMA, as they are already working in the field of auditing regarding public-interest entities under the auspices of the Corporate Reporting Standing Committee. Under this new structure within ESMA, Member States will be sufficiently represented and will be an integral part of the decision-making process. The Commission, shall after a transitional period, report back to the European Parliament and the Council with a report on the function of ESMA regarding coordination of European audit supervision and their future role in this regard. The Commission shall evaluate ESMA has enough resources to fulfil its tasks laid down in this Regulation and propose budget increases if necessary.
Amendment 138 #
Proposal for a regulation
Recital 37
Recital 37
(37) The scope of cooperation between the competent authorities of Member States should include exchange of information, cooperation with regard to quality assurance assurance reviews, assistance to investigations related to the carrying out of statutory audits of public-interest entities, including in cases where the conduct under investigation does not constitute an infringement of any legislative or regulatory provision in force in the Member States concerned and contingency planning. The modalities of cooperation between the competent authorities of the Member States may include the creation of colleges of competent authorities and the delegation of tasks among themselves. The concept of network in which auditors and firms operate should be taken into account in such cooperation. Competent authorities, ESMA and the European Supervisory Authorities should respect appropriate confidentiality and professional secrecy rules.
Amendment 139 #
Proposal for a regulation
Recital 39
Recital 39
(39) The interrelation of capital markets calls for empowering national competent authorities, ESMA and the European Supervisory Authorities to cooperate with supervisory authorities and bodies of third countries regarding the exchange of information or quality assurance reviews. However, where the cooperation with third country authorities is related to audit working papers or other documents held by statutory auditors or audit firms, the procedures of Directive 2006/43/EC should apply.
Amendment 142 #
Proposal for a regulation
Recital 44
Recital 44
(44) In order to take account of the technical developments in the financial markets, in auditing and the audit profession and to specify the requirements laid down in this Regulation, the Commission should be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union. In particular, the use of delegated acts is necessary to adapt the list of related audit services and of prohibited non-audit services as well as to set out the level of fees that ESMA concerned could charge for delivering the European Quality Certificate to statutory auditors and audit firms. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level and with ESMA. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the ESMA, European Parliament and to the Council.
Amendment 172 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Amendment 192 #
Proposal for a regulation
Article 10 – paragraph 2 – point e a (new)
Article 10 – paragraph 2 – point e a (new)
(ea) auditing technology systems and risk management procedures related to the preparation and/or control of financial information included in the financial statements and advice on risk;
Amendment 193 #
Proposal for a regulation
Article 10 – paragraph 2 – point e b (new)
Article 10 – paragraph 2 – point e b (new)
(eb) audit of occupational pension schemes and pension obligations;
Amendment 194 #
Proposal for a regulation
Article 10 – paragraph 2 – point f
Article 10 – paragraph 2 – point f
(f) any other statutory duty related to audit work imposed by Union legislaw or regulation to the statutory auditor or audit firm.
Amendment 199 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 1
Article 10 – paragraph 3 – subparagraph 1
A statutory auditor or an audit firm carrying out statutory audit of public- interest entities shall not directly or indirectly provide to the audited entity, to its parent undertaking and to its controlled undertakings prohibited non-audit services.
Amendment 201 #
Proposal for a regulation
Recital 8
Recital 8
(8) Adequate internal organisation of statutory auditors and audit firms should contribute to preventing any threats to their independence. Thus, owners or shareholders of an audit firm, as well as those managing it, should not intervene in the carrying out of a statutory audit in any way which jeopardises the independence and objectivity of the statutory auditor who carries out the statutory audit on behalf of the audit firm. Additionally, statutory auditors and audit firms should establish appropriate internal policies and procedures in relation to employees and other persons involved in the statutory audit activity within their organisations in order to ensure compliance with their statutory obligations. Those policies and procedures should in particular seek to prevent and address any threats to independence and ensure the quality, integrity and thoroughness of the statutory audit. Those policies and procedures should be proportionate in view of the scale and complexity of the business of the statutory auditor or audit firm and the audited entities.
Amendment 205 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Where the statutory auditor belongs to a network, no member of such network shall provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union any prohibited non- audit services.
Amendment 205 #
Proposal for a regulation
Recital 11
Recital 11
(11) The provision of services other than statutory audit to audited entities by statutory auditors, audit firms or members of their networks may compromise their independence. Therefore, it is appropriate to require the statutory auditor, the audit firm and the members of their network not to provide non-audit services to their audited entities. The provision ofsafeguards in the form of a prohibition of certain non- audit services by an audit firm to a company would prevent that audit firm from carrying out statutory audit of that company, thus resulting in a reduction of the audit firms available to provide statutory audit, in particular with regard to the audit of large public-interest entities where the market is concentrated. Asthe statutory auditor cannot perform to their audited entities, as well as result, in order to secure that a minimum number of audit firms is able to provide audit services to large public-interest entities, it is appropriate to request that audit firms of significant dimension focus their professional activity on the carrying out of statutory audit and are not allowed to undertake other services unconnected to their statutory audit function such as consultancy or advisory services- tendering, at the behest of the audit committee, of any non-audit service and financial audit related services above a 30% threshold.
Amendment 208 #
Proposal for a regulation
Recital 15
Recital 15
(15) The statutory audit results in an opinion on the truth and fairness of the financial statements of the audited entities. Stakeholders, however, might to be unaware of the limitations of an audit (materiality, sampling techniques, role of the auditor in the detection of fraud and the responsibility of managers), which can lead to an expectation gap. In order to reduce such gap, it is important to provide more clarity on what the scope of the statutory audit is. Therefore, more guidance is needed on a European level for statutory auditors as well as the preparers of accounts in this area, and in particular, to work towards a standardised definition, and usage, of the 'going concern' of a company.
Amendment 210 #
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, prohibited non-audit services shall mean:
Amendment 212 #
Proposal for a regulation
Recital 23
Recital 23
(23) Audit committees, or bodies performing an equivalent function within the audited entity, have a decisive role in contributing to high-quality statutory audit. It is particularly important to reinforce the independence and technical competence of the audit committee by requiring that a majority of its members is independent and that at least one member of the committee has competence in auditing and another one in auditing and/or accounting. Members of the audit committee should take part in skill enhancement programmes to ensure an appropriate level of technical knowledge to fulfil their roles. The Commission Recommendation of 15 February 2005 on the role of non- executive or supervisory directors of listed companies and on the committees of the (supervisory) board26 sets out how audit committees should be established and function. Considering, however, the dimension of boards in companies with reduced market capitalisation and in small and medium-sized public-interest entities, it would be appropriate that the functions assigned to the audit committee for those entities, or to a body performing equivalent functions within the audited entity, may be performed by the administrative or supervisory body as a whole. Public- interest entities which are UCITS or alternative investment funds should also be exempted from the obligation to have an audit committee. This exemption takes into account the fact that where those funds function merely for the purpose of pooling assets, the employment of an audit committee is not appropriate. UCITS and alternative investments funds, as well as their management companies, operate in a strictly defined regulatory environment and are subject to specific governance mechanisms such as controls exercised by their depositary.
Amendment 218 #
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, a comprehensive assessment of both proposals, 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 selectiontender procedure organised by the audited entity, under the responsibility of the audit committee. In such selectiona tender procedure, the audited entity should invite statutorypublish a call to auditors or audit firms, including smaller 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 220 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point ii
Article 10 – paragraph 3 – subparagraph 3 – point a – point ii
(ii) bookkeeping services including the calculations of current and deferred taxes and preparing accounting records and financial statements as well as financial information;
Amendment 224 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii
(iii) designing andor implementing internal control or, risk management procedureor financial information technology systems related to the preparation and/or control of financingal information included in the financial statements and advice on risk;
Amendment 227 #
Proposal for a regulation
Recital 27
Recital 27
(27) In order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms, it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity. AFurthermore, a comprehensive, transparent and independent evaluation of audit quality should be regularly and appropriately documented. This comprehensive assessment should form the basis for the annual auditor selection by the general assembly. The purpose of mandatory tendering for the audit engagement is to not only evaluate the incumbent provider's performance but also the requirements of the audited entity. Furthermore, an appropriate gradual rotation mechanism should also be established with regard to the most senior personnel involved in the statutory audit, including the key audit partners carrying out the statutory audit on behalf of the audit firm. It is also important to provide for an appropriate period within which such statutory auditor or audit firm may not carry out the statutory audit of the same entity. In order to ensure a smooth transition, the former auditor should transfer a handover file with relevant information to the incoming auditor.
Amendment 229 #
Proposal for a regulation
Recital 27 a (new)
Recital 27 a (new)
(27a) There should also be regular and open tendering of the related financial audit services and non-audit services as it provides small and medium-sized statutory auditors, audit firms and non- audit related service providers to present their services and skills in a transparent process and to increase their visibility as service providers for public-interest entities. The incumbent auditor does not necessarily have to perform related financial audit and non-audit services and so the tendering process strongly encourages audit committees to consider a broader range of prospective providers of audit and non-audit services. The purpose of tendering both financial audit related services and non-audit services is to not only evaluate the incumbent provider's performance but also the requirements of the audited entity.
Amendment 230 #
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;
Amendment 233 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv a (new)
(iva) generate information that is significant to the accounting records or financial statements that are subject to the statutory audit;
Amendment 234 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) The Proposal for a Regulation of the European Parliament and of the Council on specific requirements regarding statutory audit of public- interest entities envisages that the EU- wide cooperation between competent authorities in respect of the activities of statutory auditors and audit firms that audit the financial statements of public- interest entities would take place within ESMA. ESMA would thus take over the EU-wide cooperation mechanism that currently takes place under the aegis of the European Group of Auditors' Oversight Bodies (EGAOB), an expert group established and chaired by the European Commission. ESMA should create a standing committee composed of the competent authorities and supervisors of auditors. However, auditor public oversight would continue to be carried out at national level. ESMA would be best placed to fulfil the new tasks according to this Regulation in order to ensure an effective and operational cooperation at EU level. An EU-wide cooperation on auditor supervision within ESMA would benefit from the experience and resources of ESMA, as they are already working in the field of auditing regarding public-interest entities under the auspices of the Corporate Reporting Standing Committee. Under this new structure within ESMA, Member States will be sufficiently represented and will be an integral part of the decision-making process. The Commission, shall after a transitional period, report back to the European Parliament and the Council with a report on the function of ESMA regarding coordination of European audit supervision and their future role in this regard. The Commission shall evaluate ESMA has enough resources to fulfil its tasks laid down in this Regulation and propose budget increases if necessary.
Amendment 238 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Amendment 241 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vii a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point vii a (new)
(viia) payroll services;
Amendment 245 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
(viiia) human resources and/or recruitment services, including searching for and seeking out candidates for personnel positions within the audited entity;
Amendment 247 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii b (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii b (new)
(viiib) legal and tax services that go beyond the presentation of alternatives; tax services for natural persons with a significant role in the financial reporting of the audited entity and the marketing of tax planning concepts;
Amendment 250 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii c (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii c (new)
(viiic) promoting, dealing in, or underwriting client shares;
Amendment 251 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii d (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii d (new)
(viiid) providing comfort letters for investors in the context of the issuance of an undertaking's securities;
Amendment 254 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b
Article 10 – paragraph 3 – subparagraph 3 – point b
Amendment 267 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4
Article 10 – paragraph 3 – subparagraph 4
Amendment 271 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 5
Article 10 – paragraph 3 – subparagraph 5
Amendment 286 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
Amendment 294 #
Proposal for a regulation
Article 10 – paragraph 2 – point e a (new)
Article 10 – paragraph 2 – point e a (new)
(ea) auditing technology systems and risk management procedures related to the preparation and/or control of financial information included in the financial statements and advice on risk;
Amendment 295 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The Commission shall be empowered to adopt delegated acts in accordance with ArCompetent authorities may give noticle 68 for the purpose of adapting the list of related financial audit services referred to in paragraph 2 and the list of non-audit services referred to in paragraph 3 of this Article. When using such powers, the Commission shall take into account developments in auditing and the audit professionof further services and/or activities which it considers impart a conflict of interest and shall notify ESMA, EIOPA, EBA, and where appropriate, the ESRB.
Amendment 296 #
Proposal for a regulation
Article 10 – paragraph 2 – point e b (new)
Article 10 – paragraph 2 – point e b (new)
(eb) audit of occupational pension schemes and pension obligations;
Amendment 299 #
Proposal for a regulation
Article 10 – paragraph 2 – point f
Article 10 – paragraph 2 – point f
(f) any other statutory duty related to audit work imposed by Union legislaw or regulation to the statutory auditor or audit firm.
Amendment 308 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 1
Article 10 – paragraph 3 – subparagraph 1
A statutory auditor or an audit firm carrying out statutory audit of public- interest entities shall not directly or indirectly provide to the audited entity, to its parent undertaking and to its controlled undertakings prohibited non-audit services.
Amendment 312 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Where the statutory auditor belongs to a network, no member of such network shall provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union any prohibited non- audit services.
Amendment 316 #
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, prohibited non-audit services shall mean:
Amendment 317 #
Proposal for a regulation
Article 22 – paragraph 2 – point r
Article 22 – paragraph 2 – point r
(r) indicate the non-audit services referred to in Article 10(3)(b)(i) and (ii) that the audit committee allowed the statutory auditor or the audit firm, audit firm or non-audit service provider to provide to the audited entity;
Amendment 320 #
Proposal for a regulation
Article 22 – paragraph 2 – point t
Article 22 – paragraph 2 – point t
(t) give an opinion which shall state clearly the opinion of the statutory auditor(s) or the audit firm(s) as to whether the annual or consolidated financial statements give a true and fair view and have been prepared in accordance with the relevant financial reporting framework and, where appropriate, whether the annual or consolidated financial statements comply with statutory requirements; the audit opinion shall be either unqualified, qualified, or an adverse opinion or, if the statutory auditor(s) or audit firm(s) are unable to express an audit opinion, a disclaimer of opin. In case of a qualified or an adverse opinion, the report shall explain the reasons of such decision. In the case of a qualified or an adverse opinion or a disclaimer ofcredit institutions and insurance undertakings, in accordance with Article16 of Regulation (EU) No 1093/2010 and of Regulation (EU) No 1094/2010 respectively, the opinion, of the report shall explain the reasons of such decisionstatutory auditor(s) or the audit firm(s) should state the 'going concern' of the audited entity, where necessary, and inform the competent authority;
Amendment 321 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point ii
Article 10 – paragraph 3 – subparagraph 3 – point a – point ii
(ii) bookkeeping services including the calculations of current and deferred taxes and preparing accounting records and financial statements as well as financial information;
Amendment 323 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii
(iii) designing andor implementing internal control or, risk management procedureor financial information technology systems related to the preparation and/or control of financingal information included in the financial statements and advice on risk;
Amendment 327 #
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. When more than one statutory auditor or audit firm have been appointed to carry out the statutory audit of the public-interest entity, they shall agree on the results of the statutory audit and submit a joint report and opinion. In case of disagreement, each statutory auditor or audit firm shall submit his, her or its opinion separately. If one statutory auditor or audit firm qualifies his, her or its opinion, submits an adverse opinion or a disclaimer of opinion, the overall opinion shall be considered as qualified, or an adverse opinion or a disclaimer of opinion. In a separate paragraph each statutory auditor or audit firm shall state the reasons of disagreement.
Amendment 328 #
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;
Amendment 329 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
Amendment 330 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point iv a (new)
(iva) generate information that is significant to the accounting records or financial statements that are subject to the statutory audit;
Amendment 332 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Amendment 333 #
Proposal for a regulation
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
(1a) The statutory auditor(s) or the audit firm(s) carrying out statutory audit of credit institutions and insurance undertakings, in accordance with Article 16 of Regulation (EU) No 1093/2010 and of Regulation (EU) No 1094/2010, respectively shall also submit the additional report to the EBA, EIOPA and the ESRB.
Amendment 335 #
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 include a description of the scope and timing of the audit and significant findings from the statutory audit conducted. This should include any significant deficiencies in the internal control system of the audited entity; how they addressed significant difficulties encountered during the audit and other matters arising from the statutory audit that in the statutory auditor's or audit firm's professional judgment are significant to the financial reporting process.
Amendment 338 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vii a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point vii a (new)
(viia) payroll services;
Amendment 343 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii a (new)
(viiia) human resources and/or recruitment services, including searching for and seeking out candidates for personnel positions within the audited entity;
Amendment 346 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
In is the instance of the audited entity being exempted from the obligation to have an audit committee, the audited entity shall decide which body or organ of the entity shall engage with the statutory auditor or audit firm for the purposes of the obligations set out in this Article.
Amendment 347 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii b (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii b (new)
(viiib) legal and tax services that go beyond the presentation of alternatives; tax services for natural persons with a significant role in the financial reporting of the audited entity and the marketing of tax planning concepts;
Amendment 350 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii c (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii c (new)
(viiic) promoting, dealing in, or underwriting client shares;
Amendment 352 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii d (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii d (new)
(viiid) providing comfort letters for investors in the context of the issuance of an undertaking's securities;
Amendment 354 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b
Article 10 – paragraph 3 – subparagraph 3 – point b
Amendment 368 #
Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 3 a (new)
Article 31 – paragraph 1 – subparagraph 3 a (new)
(3a) Members of the audit committee shall take part in skill enhancement programmes in order to ensure an adequate technical knowledge level to fulfil their tasks.
Amendment 373 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4
Article 10 – paragraph 3 – subparagraph 4
Amendment 379 #
Proposal for a regulation
Article 32 – paragraph 2 – subparagraph 3
Article 32 – paragraph 2 – subparagraph 3
When it concerns the renewal of an audit engagement in accordance with the second subparagraph of Article 33(1), the audit committee shall, for the preparation of its recommendation, take into consideration any findings and conclusions base its recommendation on a comprehensive assessment of the audit quality onf the recommended statutory auditor or audit firm referred to in Article 40(6) and published by the competent authority pursuant to Article 44(d)three years before the end of the audit mandate.
Amendment 380 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 5
Article 10 – paragraph 3 – subparagraph 5
Amendment 384 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – introductory part
Article 32 – paragraph 3 – subparagraph 1 – introductory part
Amendment 388 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point a
Article 32 – paragraph 3 – subparagraph 1 – point a
(a) the audited entity shall be free to invite any statutory auditors or audit firms is free to submit proposals for the provision of the statutory audit service on the condition that Article 33(2) is respected and that at least one of the invited auditors or firms is not one who received more than 15% of the total audit fees from large public-interest entities in the Member State concerned in the previous calendar year;
Amendment 390 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point b
Article 32 – paragraph 3 – subparagraph 1 – point b
(b) the audited entity shall be free to choose the method to contact the invited statutory auditor(s) or audit firm(s) and shall not be required to committee shall publish a call for tenders in the Official Journal of the European Union, where necessary, and/or in national gazettes or newspapers;
Amendment 392 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point c
Article 32 – paragraph 3 – subparagraph 1 – point c
(c) the audited entity committee shall prepare tender documents to the intention of the invited statutory auditor(s) or audit firm(s). Those tender documents shall allow the audit firm to understand the business of the audited entity and the type of statutory audit that is to be carried out. The tender documents shall contain transparent and non- discriminatory selection criteria that shall be used by the audited entity committee to evaluate the proposals made by statutory auditors or audit firms;
Amendment 393 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point d
Article 32 – paragraph 3 – subparagraph 1 – point d
(d) the audited entity committee shall be free to define the selection procedure and may conduct direct negotiations with interested tenderers in the course of the procedure;
Amendment 395 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point f
Article 32 – paragraph 3 – subparagraph 1 – point f
(f) the audit committeed entity shall evaluateperform a comprehensive assessment of the proposals made by the statutory auditors or audit firms in accordance with the selection criteria predefined in the tender documents. The audited entity shall prepare a report on the conclusions of the selection procedure, which shall be validated by the audit committee. The audited entity and the audit committee shall take into consideration any inspection report on the applicant statutory auditor or audit firm referred to in Article 40(6) and published by the competent authority pursuant to Article 44(d);
Amendment 396 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point g
Article 32 – paragraph 3 – subparagraph 1 – point g
(g) the audited entity committee shall be able to demonstrate to the competent authority referred to in Article 35 that the selection procedure was conducted in a fair manner.
Amendment 397 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 2
Article 32 – paragraph 3 – subparagraph 2
Amendment 397 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
Amendment 399 #
Proposal for a regulation
Article 32 – paragraph 5 – subparagraph 1
Article 32 – paragraph 5 – subparagraph 1
The proposal of the administrative or supervisory board to the general meeting of shareholders or members of the audited entity for the appointment of statutory auditors or audit firms shall include the recommendation made by the audit committee. The proposal to the general meeting shall be accompanied by the results of the comprehensive assessment referred to in Article 32 (2) and (3)
Amendment 402 #
Proposal for a regulation
Article 32 – paragraph 6 – subparagraph 1
Article 32 – paragraph 6 – subparagraph 1
Amendment 412 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The Commission shall be empowered to adopt delegated acts in accordance with ArCompetent authorities may give noticle 68 for the purpose of adapting the list of related financial audit services referred to in paragraph 2 and the list of non-audit services referred to in paragraph 3 of this Article. When using such powers, the Commission shall take into account developments in auditing and the audit professionof further services and/or activities which it considers impart a conflict of interest and shall notify ESMA, EIOPA, EBA, and where appropriate, the ESRB.
Amendment 413 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Article 10a Tender of non-audit services 1. Related financial audit services enumerated in Article 10 (2) that would increase the ratio of non-audit to audit fees to more than 30% and non-audit related services must be subject to an open and transparent tendering procedure, if the designated audit committee feels it is necessary. If the audit committee does not feel it is necessary, it should explain why to the competent authority. 2. The tendering procedure referred to in Paragraph 1 shall be designed by the audit committee and approved by the competent authority. When designing their non-audit service policies, audit committees must: (a) aim for the greatest possible transparency; (b) give due consideration to small and medium-sized service providers; (c) ensure involvement of shareholders in the provision of non-audit services, in particular the audit committee shall receive an annual approval of the audited entities policy for non-audit services. 3. The selection procedure for those non- audit services referred to in paragraph 1 shall respect the following criteria: (a) the audit committee shall be free to invite any statutory auditors, audit firms or non-audit service providers to submit proposals for the provision of non-audit services; (b) tender documents shall be prepared by the audit committee, which should contain transparent and non- discriminatory selection criteria that shall be used to evaluate the proposals made by statutory auditor(s), audit firm(s), or non- audit service provider(s); (c) where, in accordance with national Union law, the competent authorities referred to in Article 35, require statutory auditors, audit firms and non-audit service providers should comply with certain quality standards, those standards shall be included in the tender documents; (d) the audit committee shall evaluate the proposals made by the statutory auditors, audit firms or non-audit service providers in accordance with the selection criteria predefined in the tender documents; (e) the audit committee shall be able to demonstrate to the competent authority referred to in Article 35 that the selection procedure was conducted in a fair manner.
Amendment 424 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 2
Article 33 – paragraph 1 – subparagraph 2
The public-interest entity may renew thise audit engagement only once, provided this is based on a proposal of the audit committee after a re-endering process has taken place. Shareholders at the annual general meeting shall formally approve the statutory auditor(s) engagement.
Amendment 436 #
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 614 years with a mandatory re-rendering process every 7 years.
Amendment 441 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Amendment 451 #
Proposal for a regulation
Article 22 – paragraph 2 – point t
Article 22 – paragraph 2 – point t
(t) give an opinion which shall state clearly the opinion of the statutory auditor(s) or the audit firm(s) as to whether the annual or consolidated financial statements give a true and fair view and have been prepared in accordance with the relevant financial reporting framework and, where appropriate, whether the annual or consolidated financial statements comply with statutory requirements; the audit opinion shall be either unqualified, qualified, an adverse opinion or, if the statutory auditor(s) or audit firm(s) are unable to express an audit opinion, a disclaimer of opinion. In case of a qualified or an adverse opinion or a disclaimer of opinion, the report shall explain the reasons of such decision. In the case of credit institutions and insurance undertakings, in accordance with Article16 of Regulation (EU) No 1093/2010 and of Regulation (EU) No 1094/2010 respectively, the opinion of the statutory auditor(s) or the audit firm(s) should state the 'going concern' of the audited entity, where necessary, and inform the competent authority;
Amendment 453 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
Amendment 456 #
Proposal for a regulation
Article 22 – paragraph 4
Article 22 – paragraph 4
Amendment 463 #
Proposal for a regulation
Article 33 – paragraph 4 – subparagraph 2
Article 33 – paragraph 4 – subparagraph 2
The statutory auditor or audit firm shall establish an appropriate gradual rotation mechanism with regard to the most senior personnel involved in the statutory audit, including at least the persons who are registered as statutory auditors. The gradual rotation mechanism shall be undertaken in phases on the basis of individuals rather than of a completethe entire engagement team. It shall be proportionate in view of the scale and the dimension of the activity of the statutory auditor or audit firm.
Amendment 463 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 1 a (new)
Article 23 – paragraph 1 – subparagraph 1 a (new)
The statutory auditor(s) or the audit firm(s) carrying out statutory audit of credit institutions and insurance undertakings, in accordance with Article 16 of Regulation (EU) No 1093/2010 and of Regulation (EU) No 1094/2010, respectively shall also submit the additional report to the EBA, EIOPA and the ESRB.
Amendment 471 #
Proposal for a regulation
Article 33 – paragraph 5 – subparagraph 2
Article 33 – paragraph 5 – subparagraph 2
The former statutory auditor or audit firm shall also grant access to the incoming statutory auditor(s) or audit firm(s) to the additional reports to the audit committee referred to in Article 23 of previous years and to any information transmitted to competent authorities pursuant to Articles 25 and 27.
Amendment 476 #
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 include a description of the scope and timing of the audit and significant findings from the statutory audit conducted. This should include any significant deficiencies in the internal control system of the audited entity; how they addressed significant difficulties encountered during the audit and other matters arising from the statutory audit that in the statutory auditor's or audit firm's professional judgment are significant to the financial reporting process;
Amendment 490 #
Proposal for a regulation
Article 43 – paragraph 4 – subparagraph 2 a (new)
Article 43 – paragraph 4 – subparagraph 2 a (new)
(2a) The competent authorities shall advise ESMA on the general status of contingency plans.
Amendment 495 #
Proposal for a regulation
Article 46 – paragraph 1 – subparagraph 3 a (new)
Article 46 – paragraph 1 – subparagraph 3 a (new)
(3a) ESMA shall cooperate with the international bodies involved in the developing of the international standards and practices related to the carrying out of statutory audits.
Amendment 500 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
In is the instance of the audited entity being exempted from the obligation to have an audit committee, the audited entity shall decide which body or organ of the entity shall engage with the statutory auditor or audit firm for the purposes of the obligations set out in this Article.
Amendment 510 #
Proposal for a regulation
Article 69 a (new)
Article 69 a (new)
Article 69a Report about ESMA The Commission shall by X X ( five years after the end of the transitional period) prepare a report on ESMA’s current and future role. The Commission shall assess whether ESMA has enough resources to fulfil its tasks according to this Regulation.
Amendment 511 #
Proposal for a regulation
Article 69 a (new)
Article 69 a (new)
Article 69a Report on ESMA The Commission shall by X X ( five years after the end of the transitional period) prepare a report on ESMA’s current and future role. The Commission shall assess whether ESMA has enough resources to fulfil its tasks according to this Regulation.
Amendment 520 #
Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 3 a (new)
Article 31 – paragraph 1 – subparagraph 3 a (new)
Members of the audit committee shall take part in skill enhancement programmes in order to ensure an adequate technical knowledge level to fulfil their tasks.
Amendment 534 #
Proposal for a regulation
Article 32 – paragraph 2 – subparagraph 3
Article 32 – paragraph 2 – subparagraph 3
When it concerns the renewal of an audit engagement in accordance with the second subparagraph of Article 33(1), the audit committee shall, for the preparation of its recommendation, take into consideration any findings and conclusions base its recommendation on a comprehensive assessment of the audit quality onf the recommended statutory auditor or audit firm referred to in Article 40(6) and published by the competent authority pursuant to Article 44(d)after four years of the audit engagement.
Amendment 536 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – introductory part
Article 32 – paragraph 3 – subparagraph 1 – introductory part
Amendment 539 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point a
Article 32 – paragraph 3 – subparagraph 1 – point a
(a) the audited entity shall be free to invite any statutory auditors or audit firms is free to submit proposals for the provision of the statutory audit service on the condition that Article 33(2) is respected and that at least one of the invited auditors or firms is not one who received more than 15% of the total audit fees from large public-interest entities in the Member State concerned in the previous calendar year;
Amendment 542 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point b
Article 32 – paragraph 3 – subparagraph 1 – point b
(b) the audited entity shall be free to choose the method to contact the invited statutory auditor(s) or audit firm(s) and shall not be required to committee shall publish a call for tenders in the Official Journal of the European Union, where necessary, and/or in national gazettes or newspapers;
Amendment 543 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point c
Article 32 – paragraph 3 – subparagraph 1 – point c
(c) the audited entity committee shall prepare tender documents to the intention of the invited statutory auditor(s) or audit firm(s). Those tender documents shall allow the audit firm to understand the business of the audited entity and the type of statutory audit that is to be carried out. The tender documents shall contain transparent and non- discriminatory selection criteria that shall be used by the audited entity committee to evaluate the proposals made by statutory auditors or audit firms;
Amendment 544 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point d
Article 32 – paragraph 3 – subparagraph 1 – point d
(d) the audited entity committee shall be free to define the selection procedure and may conduct direct negotiations with interested tenderers in the course of the procedure;
Amendment 545 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point f
Article 32 – paragraph 3 – subparagraph 1 – point f
(f) the audit committeed entity shall evaluateperform a comprehensive assessment of the proposals made by the statutory auditors or audit firms in accordance with the selection criteria predefined in the tender documents. The audited entity shall prepare a report on the conclusions of the selection procedure, which shall be validated by the audit committee. The audited entity and the audit committee shall take into consideration any inspection report on the applicant statutory auditor or audit firm referred to in Article 40(6) and published by the competent authority pursuant to Article 44(d);
Amendment 546 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point g
Article 32 – paragraph 3 – subparagraph 1 – point g
(g) the audited entity committee shall be able to demonstrate to the competent authority referred to in Article 35 that the selection procedure was conducted in a fair manner.
Amendment 547 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 2
Article 32 – paragraph 3 – subparagraph 2
Amendment 552 #
Proposal for a regulation
Article 32 – paragraph 5 – subparagraph 1
Article 32 – paragraph 5 – subparagraph 1
The proposal of the administrative or supervisory board to the general meeting of shareholders or members of the audited entity for the appointment of statutory auditors or audit firms shall include the recommendation made by the audit committee. The proposal to the general meeting shall be accompanied by the results of the comprehensive assessment referred to in Article 32 (2) and (3).
Amendment 554 #
Proposal for a regulation
Article 32 – paragraph 6 – subparagraph 1
Article 32 – paragraph 6 – subparagraph 1
Amendment 572 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 2
Article 33 – paragraph 1 – subparagraph 2
The public-interest entity may renew thise audit engagement only once, provided this is based on a proposal of the audit committee after a re-tendering process has taken place. Shareholders at the annual general meeting shall formally approve the statutory auditor(s) engagement.
Amendment 585 #
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 614 years. At least one re-rendering process shall take place during this 14 year period.
Amendment 592 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Amendment 614 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
Amendment 620 #
Proposal for a regulation
Article 33 – paragraph 4 – subparagraph 2
Article 33 – paragraph 4 – subparagraph 2
The statutory auditor or audit firm shall establish an appropriate gradual rotation mechanism with regard to the most senior personnel involved in the statutory audit, including at least the persons who are registered as statutory auditors. The gradual rotation mechanism shall be undertaken in phases on the basis of individuals rather than of a completethe entire engagement team. It shall be proportionate in view of the scale and the dimension of the activity of the statutory auditor or audit firm.
Amendment 623 #
Proposal for a regulation
Article 33 – paragraph 5 – subparagraph 2
Article 33 – paragraph 5 – subparagraph 2
The former statutory auditor or audit firm shall also grant access to the incoming statutory auditor(s) or audit firm(s) to the additional reports to the audit committee referred to in Article 23 of previous years and to any information transmitted to competent authorities pursuant to Articles 25 and 27.
Amendment 671 #
Proposal for a regulation
Article 43 – paragraph 4 – subparagraph 2
Article 43 – paragraph 4 – subparagraph 2
The competent authorities shall not formally approve or endorse the contingency plans. They may however provide an opinion on the contingency plans or on draft contingency plans, should the audit firms consult them in advanceadvise ESMA on the general status of contingency plans.
Amendment 733 #
Proposal for a regulation
Article 69 a (new)
Article 69 a (new)
Article 69 a Report on ESMA The Commission shall by X X ( five years after the end of the transitional period) prepare a report on ESMA's current and future role. The Commission shall assess whether ESMA has enough resources to fulfil its tasks according to this Regulation.