ACCA calls on EU audit supervision review to strengthen stakeholder trust

Leading global accountancy body ACCA has applauded the European Commission's initiative to consult on audit supervision reform.

ACCA says strong and consistent audit oversight is fundamental to investor confidence and to the competitiveness of Europe's capital markets.

Maggie McGhee, Executive Director, Strategy and Governance, ACCA, said: 'Greater convergence in supervisory practices across the European Union (EU) can enhance trust in statutory audits, particularly for public interest entities and in cross-border markets.'

ACCA wants reforms to build on what is already working in national systems and it also needs to be proportionate. It is calling on the EC to adopt an evidence-based approach to ensure that supervisory convergence delivers tangible improvements to audit quality without duplicating existing structures

Antonis Diolas, Head of Audit and Assurance - Policy & Insights, ACCA said: 'ACCA has long supported audit quality through training, ethics, and where relevant support to oversight functions. We stand ready to contribute to a supervisory framework that works in practice across Europe.'

To succeed, reforms should:

• clarify roles and responsibilities between EU and national supervisors;
• ensure consistent inspection and enforcement approaches not just across the EU but also reflecting global best practice;
• provide adequate resources and funding mechanisms, including building the talent pipeline of auditors and sustainability assurance providers;
• take into account the upcoming expansion of assurance work, including sustainability assurance, so that supervision evolves in step with practice.

McGhee said: 'We share the Commission's ambition to strengthen trust in statutory audit as a foundation for Europe's markets. We look forward to engaging constructively in this consultation to help achieve the objectives of a well-calibrated supervisory model.'

Commissioner Maria Luís Albuquerque Financial Services and the Savings and Investments Union Commissioner announced the EC's intention to consult on different options. Previous audit supervision reforms date from 2014.