12 Amendments of Pervenche BERÈS related to 2010/2037(INI)
Amendment 6 #
Draft opinion
Recital A a (new)
Recital A a (new)
Aa. whereas the collapse of a dominant audit firm would seriously undermine the credibility of the audit profession as a whole and could create major uncertainty on the quality of financial statements made for listed companies,
Amendment 13 #
Draft opinion
Recital B
Recital B
B. whereas, following the financial crisis, auditors have been identified as being able to play a key role in strengthening the risk management oversight of Systemically Important Fcompanies notably financial Iinstitutions (SIFIs),
Amendment 16 #
Draft opinion
Recital C
Recital C
C. whereas the role of the audit committees within SIFIcompanies has not been fully utilised,
Amendment 27 #
Draft opinion
Paragraph 1
Paragraph 1
1. Calls for the provision of increased opportunities for smaller firms by preventing internal audit services being carried out by the sameTakes the view that there should be a ban on services other than auditing being provided to the audited company, as the external audit; notes that areas of audit services which are deemed to incur a conflict of interis would pose a risk to the auditor’s independence; takes the view, furthermore, that under no circumstancest should be carried out by different companies, inclinternal and external auditing evaluations of complex structured productsservices be provided simultaneously;
Amendment 37 #
Draft opinion
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Takes the view that statutory auditing has a social function and is in the public interest, as it is a fundamental component of the social, economic and political model and is a key tool for companies to access financing and for corporate governance;
Amendment 41 #
Draft opinion
Paragraph 2
Paragraph 2
2. Believes companies should conduct a compulsory open tendering process for statutory appointments of external auditors every eight years, on a renewable basis; notes that for SIFIs this should be reduced to every four yearsthat, in order to guarantee the independence of audits, auditing contracts should run for no longer than eight years; takes the view that an initial contract should be concluded for four years, renewable only once for a further period of four years, followed by a period of at least four years – eight years for public interest entities – during which the audit firm concerned cannot audit the same company again; considers that there would be a need, at the end of the initial four-year period, for a new team to be appointed from within the audit firm;
Amendment 57 #
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Believes that joint audit could play a significant role by reducing the specific risks resulting from the over concentration of the audit profession; calls therefore the Commission to explore through an impact assessment the advantages and potential costs of the introduction of a compulsory joint audit system in the European union with respect to concentration on the audit market and the objective of financial stability;
Amendment 59 #
Draft opinion
Paragraph 2 b (new)
Paragraph 2 b (new)
2b. Considers that significant mergers or acquisitions achieved by dominant audit firms should be carefully monitored by the Commission in order to avoid a strengthening of the oligopolistic feature of audit market; asks the Commission to achieve an annual report including recommendations designed to promote a stronger competition in the audit market;
Amendment 65 #
Draft opinion
Paragraph 3
Paragraph 3
3. Calls for enhanced, two-way communication between auditors and national financial supervisors of SIFIlisted companies, especially in relation to specific areas of concern, including the interaction between different financial products; calls on for the same communication to be established by auditors and EU supervisors (ESMA) for cross border entities; considers that national supervisors should provide EU supervisors on a regular basis with relevant information concerning listed companies;
Amendment 78 #
Draft opinion
Paragraph 4
Paragraph 4
4. Calls for the auditors of SIFIcross-border financial institutions to report periodically, on a collective basis, to the ESRB;
Amendment 80 #
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Considers that the current system of corporate social and environmental responsibility (CSER) is still unregulated; believes however that audit companies could have an important incentive role towards private companies with respect to the promotion and implementation of CSER. Calls therefore the commission to come up with legislative proposals designed to task audit firms with reporting obligations with respect to CSER;
Amendment 87 #
Draft opinion
Paragraph 5
Paragraph 5
5. Calls for the role of the audit committees of SIFIs to be strengthened by requiring them to approve a risk model assessment which includes firm-specific comparisons to benchmarks; demands that this assessment be presented to the boards of SIFIs, along with the full audit report, annually for consideration and approvallisted companies to be strengthened.