Audit Committees of Public Interest Entities in Europe

Audit Committees of Public Interest Entities in Europe

Christoph Van Der Elst

Series number :

Serial Number: 
276/2014

Date posted :

December 01 2014

Last revised :

December 07 2014
SSRN Share

Keywords

  • Audit Committee • 
  • Corporate governance • 
  • monitoring • 
  • Auditor • 
  • independence

In 2014 the European Union reformed the regulatory framework of statutory audits in Directive 2014/56/EC and Regulation (EU) Nr. 537/2014. Part of the new legislation addresses the composition and responsibilities of the audit committee of public-interest entities. This contribution studies the innovations for audit committees.

It is shown that many new requirements are very detailed and will force audit committees to develop new procedures. We fear that some of these new requirements are too prescriptive and will not necessarily reach the goal of better audits.

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