42 Amendments of Nils TORVALDS related to 2011/0359(COD)
Amendment 111 #
Proposal for a regulation
Title 0
Title 0
Proposal for a REGULATIONDIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on specific requirements regarding statutory audit of public-interest entities (Text with EEA relevance) 'this amendment applies throughout the text'
Amendment 124 #
Proposal for a regulation
Recital 24 a (new)
Recital 24 a (new)
(24a) When it concerns the renewal of an audit engagement the audit committee shall base its recommendation periodically on a comprehensive assessment of the audit quality of the statutory auditor or audit firm. The comprehensive assessment shall include the consideration of professional competencies of the statutory auditor or audit firm (i.e. industry knowledge, infrastructure, technical know-how, IT competence), which may vary according to the size and complexity of the audited entity. The audit committee shall also consider adherence to relevant rules and regulations as well as to professional standards. The competent authority shall issue guidelines on the criteria of professional competencies to facilitate the selection procedure.
Amendment 128 #
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. 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 thFurthermore, a comprehensive, transparent and independent evaluation of audit quality should be regularly and appropriately documented. This comprehensive assessment should form the basis for the auditor selection by the general assembly, which follows a tender procedure at least every 14 years. Furthermore, an appropriate gradual rotation mechanism for financial companies defined in this Regulation should be estatutory 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 auditorblished 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.
Amendment 153 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
A statutory auditor or audit firm shall take all necessary steps to ensure that the carrying outindependence of athe statutory auditor ofr a public-interest entity is not affected by any existing or potential conflict of interest or businessudit firm carrying out the statutory audit is not compromised by financial, personal, business, employment or other relationships involving the statutory auditor or, the audit firm carrying out the statutory audit and, where appropriate, its, its affiliate firms and network, managers, auditors, employees, any other natural persons whose services are placed at the disposal or under the control of the statutory auditor or audit firm, or any person directly or indirectly linked tod any natural person in a position to influence the outcome of the statutory auditor or audit firm by control.
Amendment 161 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 178 #
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
A statutory auditor or an audit firm carrying out statutory audit of public- interest entities mashall not directly or indirectly provide to the audited entity, to its parent undertaking and to its controlled undertakings statutory any non-audit services and related financial audit servicesthat are prohibited by this Article.
Amendment 184 #
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 2
Article 10 – paragraph 1 – subparagraph 2
Where the statutory auditor belongs to a network, ano member of such network mayshall provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union statutoryany non- audit services or related financial audit servicesthat are prohibited by this Article.
Amendment 188 #
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
Amendment 211 #
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 216 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point i a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point i a (new)
(ia) Providing tax services involving acting as an advocate before a public tribunal or court in the resolution of a tax matter and the amounts involved are material to the financial statements;
Amendment 217 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point i b (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point i b (new)
(ib) Preparing tax calculations of current and deferred tax liabilities or assets for the purpose of preparing accounting entries that are material to the financial statements;
Amendment 218 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point i c (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point i c (new)
(ic) Providing tax or corporate finance advice when the effectiveness of the advice depends upon a particular accounting treatment or presentation in the financial statements and when there is reasonable doubt about the appropriateness of the accounting treatment and the outcome or consequences of the advice would materially affect such financial statements;
Amendment 221 #
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 and preparing, payroll services and the preparation of accounting records and financial statements;
Amendment 225 #
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 riskthat;
Amendment 227 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii – point a (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii – point a (new)
a) form a significant part of the internal control over financial reporting of the audited entity, or
Amendment 228 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii – point b (new)
Article 10 – paragraph 3 – subparagraph 3 – point a – point iii – point b (new)
b) generate information that is significant to the accounting records of financial statements that are subject to the statutory audit;
Amendment 231 #
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 repor or litigation support services, where the valuation would have a material effect separately or in the aggregate on the financial statements;
Amendment 235 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point v
Article 10 – paragraph 3 – subparagraph 3 – point a – point v
(v) actuarial and legal services, including the resolution of litigationlegal services consisting of acting as an advocate in the resolution of disputes and litigation where the advocacy services can only be provided by a person admitted to practice law before the courts of a Member State and the amounts involved are material to the financial statements;
Amendment 240 #
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 243 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
(viii) bproker or dealer, investment adviser, or investment banking services.viding corporate finance services involving promoting, dealing in, or underwriting shares of the audited entity;
Amendment 244 #
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 services with respect to senior management in a position to exert significant influences over the preparation of the accounting records or financial statement subject to the statutory audit, where such services involve.
Amendment 255 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b
Article 10 – paragraph 3 – subparagraph 3 – point b
Amendment 268 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4
Article 10 – paragraph 3 – subparagraph 4
Amendment 272 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 5
Article 10 – paragraph 3 – subparagraph 5
Amendment 273 #
Proposal for a regulation
Article 10 – paragraph 3 a (new)
Article 10 – paragraph 3 a (new)
(3a) A statutory auditor or audit firm may provide non-audit services other than prohibited non-audit services where: a. the provision of those services has been approved by the audit committee, in the light of its obligation under Article 31 to satisfy itself as to the auditor's likely ability to mitigate any threats to its independence in its conduct as statutory auditor; and b. the competent authority has not exercised its power under Article 38 – paragraph 6 a (new), to prohibit the provision of those services.
Amendment 278 #
Proposal for a regulation
Article 10 – paragraph 4 – subparagraph 3
Article 10 – paragraph 4 – subparagraph 3
Being involved in the decision-taking of the audited entity and the provision of the services referred to in points (ii) and (iii) of paragraph 3(a)non- audit services shall be considered as affecting such independence in all cases.
Amendment 280 #
Proposal for a regulation
Article 10 – paragraph 4 – subparagraph 4
Article 10 – paragraph 4 – subparagraph 4
Amendment 287 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
Amendment 292 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
Amendment 363 #
Proposal for a regulation
Article 31 – paragraph 1 – subparagraph 1
Article 31 – paragraph 1 – subparagraph 1
Each public-interest entity shall have an audit committee. The audit committee shall be composed of non-executive members of the administrative body and/or members of the supervisory body of the audited entity and/or members appointed by the general meeting of shareholders of the audited entity or, for entities without shareholders, by an equivalent body.
Amendment 380 #
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 a period of three consecutive years. The competent authority referred to in Article 35 may adjust the timing in accordance with the national appointment period.
Amendment 383 #
Proposal for a regulation
Article 32 – paragraph 2 – subparagraph 4
Article 32 – paragraph 2 – subparagraph 4
The comprehensive assessment shall be performed in a transparent and systematic approach, and shall include the consideration of professional competencies of the auditor or audit firm which are necessary to perform the statutory audit in compliance with relevant ethical requirements and international standards on auditing referred to in Article 20. It shall take into consideration any findings and conclusions on the recommended statutory auditor or audit firm referred to in Article 40(6) and published by the competent authority pursuant to Article 44(d). In its recommendation, the audit committee shall state that its recommendation is free from influence by a third party and that no contractual clause as referred to in paragraph 7 has been imposed upon it.
Amendment 394 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1 – point f
Article 32 – paragraph 3 – subparagraph 1 – point f
(f) the audited entity shall evaluate 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 audit committee shall perform a comprehensive assessment of the proposals made by the statutory auditors or audit firms in a transparent and systematic approach that shall include the consideration of professional competencies of the auditor or audit firm which are necessary to perform the statutory audit in compliance with relevant ethical requirements and international standards on auditing referred to in Article 20. The competent authority shall issue guidelines on the criteria of professional competencies. 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 400 #
Proposal for a regulation
Article 32 – paragraph 5 – subparagraph 2
Article 32 – paragraph 5 – subparagraph 2
If the proposal of the administrative or supervisory board departs from the recommendation of the audit committee, the proposal shall justify the reasons for not following the recommendation of the audit committee. It shall equally justify the reasons if, following a tender procedure referred to in paragraph 3, the renewal of an audit engagement is proposed.
Amendment 401 #
Proposal for a regulation
Article 32 – paragraph 6 – subparagraph 1
Article 32 – paragraph 6 – subparagraph 1
Amendment 404 #
Proposal for a regulation
Article 32 – paragraph 6 – subparagraph 2
Article 32 – paragraph 6 – subparagraph 2
Amendment 478 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
Amendment 489 #
Proposal for a regulation
Article 43
Article 43
Amendment 499 #
Proposal for a regulation
Article 52
Article 52
Amendment 502 #
Proposal for a regulation
Article 61 – paragraph 3
Article 61 – paragraph 3
3. This Article and Articles 62 to 66 areis without prejudice to provisions of national criminal law.
Amendment 503 #
Proposal for a regulation
Article 62
Article 62
Amendment 505 #
Proposal for a regulation
Article 63
Article 63