Lucia Quaglia
- Published in print:
- 2014
- Published Online:
- August 2014
- ISBN:
- 9780199688241
- eISBN:
- 9780191767517
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199688241.003.0006
- Subject:
- Political Science, European Union
The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had ...
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The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had a strong regulatory capacity in accounting. Hence, the governance structure of the International Accounting Standards Board (IASB) and most of its accounting standards were uploaded by the US. The regulatory capacity of the EU in auditing was very limited until the late 2000s. In the US, the Sarbanes-Oxley Act (2002) strengthened US regulatory capacity. Certain provisions of the Act also had extraterritorial effects. As a response, the EU beefed up its regulatory capacity. After the crisis, the Commission proposed new legislation, whereby member states are required to use international auditing standards. In light of the EU’s decision to adopt international auditing standards, the governance structure of the International Auditing and Assurance Standards Board (IAASB) was reformed and its standards were revised to make them better suitable for adoption in the EU as well as worldwide.Less
The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had a strong regulatory capacity in accounting. Hence, the governance structure of the International Accounting Standards Board (IASB) and most of its accounting standards were uploaded by the US. The regulatory capacity of the EU in auditing was very limited until the late 2000s. In the US, the Sarbanes-Oxley Act (2002) strengthened US regulatory capacity. Certain provisions of the Act also had extraterritorial effects. As a response, the EU beefed up its regulatory capacity. After the crisis, the Commission proposed new legislation, whereby member states are required to use international auditing standards. In light of the EU’s decision to adopt international auditing standards, the governance structure of the International Auditing and Assurance Standards Board (IAASB) was reformed and its standards were revised to make them better suitable for adoption in the EU as well as worldwide.
