Ian Dewing and Peter Russell
- Published in print:
- 2014
- Published Online:
- June 2014
- ISBN:
- 9780199683963
- eISBN:
- 9780191763410
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683963.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and ...
More
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.Less
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.
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 ...
More
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.
