BETA

Activities of Alexandra THEIN related to 2011/0389(COD)

Shadow reports (1)

2016/11/22
Committee: JURI
Dossiers: 2011/0389(COD)
Documents: PDF(458 KB) DOC(737 KB)

Amendments (49)

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point a

Directive 2006/43/EC
Article 2 – point 1 – point a

(a) required by Union law;.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point a

Directive 2006/43/EC
Article 2 – point 1 – point b

~~(b) required by national law as regards small undertakings;~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point a

Directive 2006/43/EC
Article 2 – point 1 – point c

~~(c) voluntarily conducted by small undertakings;';~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point b

Directive 2006/43/EC
Article 2 – point 10

(b) Point 10 is replaced by the following: ‘10. ‘competent authorities’ means the authorities designated by law that are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects thereof; the reference to 'competent authority' in a specific Article means a reference to the authority responsible for the functions referred to in that Article;’ ;deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point c

(c) insurance undertakings within the meaning of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council(**); Member States may also designate other entities as public-interest entities, for instance entities that are of major public significance because of the nature of their business, their size or the number of their employees;

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point d

(d) entities governed by the law of a Member State which are payment institutions as defined in point 4 of Article 4 of Directive 2007/64/EC of the European Parliament and of the Council(***), unless Article 15(2) of that Directive applies; (***) OJ L 319, 5.12.2007, p. 1.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point e

(e) entities governed by the law of a Member State which are electronic money institutions as defined in point 1 of Article 2 of Directive 2009/110/EC of the European Parliament and of the Council(****), unless Article 15(2) of Directive 2007/64/EC applies; (****) OJ L 267, 10.10.2009, p. 7.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point f

~~(f) investment firms as defined in point 1 of Article 4(1) of Directive 2004/39/EC;~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point g

~~(g) EU alternative investment funds as defined in Article 4(1)(k) of Directive 2011/61/EC of the European Parliament and of the Council(*****); (*****) OJ L 174, 1.7.2001, p. 1.~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point h

(h) undertakings for collective investment in transferable securities (UCITS) as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council(******); (******) OJ L 302, 17.11.2009, p. 32.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point i

~~(i) entities governed by the law of a Member State which are central securities depositories;~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 2 – point d

Directive 2006/43/EC
Article 2 – point 13 – point j

(j) central counterparties as defined in Article 2(1) of Regulation X/XXXX of the European Parliament and of the Council(*******)[see proposal for a Regulation on OTC derivatives, central counterparties and trade repositories, COM(2010)484); (*******) OJ L ...deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 3 – point a – point i

Directive 2006/43/EC
Article 3 – paragraph 2 – subparagraph 1

~~‘Each Member State shall designate the competent authority referred to in Article 32 as authority responsible for approving statutory auditors and audit firms.’;~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 3 – point b – point i

Directive 2006/43/EC
Article 3 – paragraph 4 – subparagraph 1 – point b

(i) in the first subparagraph, point (b) is ~~deleted;~~amended as follows: (b) A majority of the voting rights in an entity must be held by audit firms which are approved in a Member State or by natural persons who meet at least the conditions imposed by Articles 4 and 6 to 12. Member States may provide that such natural persons must also be approved in another Member State. A minority of the voting rights in an entity may be held by other natural persons who are members of a liberal profession within the meaning of Recital 43 of Directive 2005/36/EC of the European Parliament and of the Council and who, in accordance with the law of the Member State concerned, may exercise their profession together with statutory auditors or audit firms, but not in the name and/or on behalf of a third party. Commercial investors may not take a holding, whether directly, indirectly or in a fiduciary capacity, in audit firms. For the purposes of the statutory audit of cooperatives and similar entities, as referred to in Article 45 of Directive 86/635/EEC, Member States may establish further specific provisions concerning voting rights. ____________ * OJ L 255, 30.9.2005, p. 22.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 3 – point b – point iii

Directive 2006/43/EC
Article 3 – paragraph 4 – subparagraph 2

(iii) the second subparagraph is replaced by the following: ‘Member States may not set additional conditions in relation to these points. Member States shall not be allowed to require that a minimum amount of capital or of voting rights in an audit firm is held by statutory auditors or audit firms.’.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 4

Directive 2006/43/EC
Article 3a

By derogation from Article 3(1) of this Directive, a statutory auditor who is approved in a Member State shall be entitled to perform statutory audits in another Member State on a temporary or occasional basis. Articles 5 to 9 of Directive 2005/36/EC of the European Parliament and of the Council* shall apply.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 4

Directive 2006/43/EC
Article 3 b– paragraph 2

2. An audit firm that wishes to carry out statutory audits in a Member State other than the one in which it has been approved shall register with the competent ~~authorit~~body in the host Member State in accordance with Articles 15 and 17.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 4

Directive 2006/43/EC
Article 3 b – paragraph 3

3. The competent ~~authorit~~body in the host Member State shall register the audit firm upon presentation of a certificate attesting to its registration with the competent ~~authorit~~body in the home Member State. The competent ~~authorit~~body in the host Member State may require that the certificate issued by the competent ~~authorit~~body in the home Member State be not more than three months old. It shall inform the competent ~~authorit~~body in the home Member State of its registration.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 5

Directive 2006/43/EC
Article 6 – paragraph 1 a (new)

‘The competent ~~authorit~~bodies referred to in Article 32 shall cooperate inwith a view tof achieving a minimum convergence of the requirements set out in this Article. They shall cooperate with ~~the European Securities and Markets Authority (ESMA) and the competent authorities referred to in Article X of Regulation [XXX] of [XXX]~~ESMA in so far as such convergence relates to the statutory audits of public- interest entities.’.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 5

Directive 2006/43/EC
Article 6 – paragraph 1 a (new)

The competent authorities referred to in Article 32 shall cooperate inwith a view tof achieving a minimum convergence of the requirements set out in this Article. When engaging in such cooperation, these competent authorities shall take into account developments in auditing and the audit profession, and in particular, convergence that has already been achieved by the profession. They shall cooperate with the European Securities and Markets Authority (ESMA) and the competent authorities referred to in Article X of Regulation [XXX] of [XXX] in so far as such convergence relates to the statutory audit of public-interest entities.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 6 – point b

Directive 2006/43/EC
Article 8 – paragraph 3

The Commission shall be empowered to adopt delegated acts in accordance with Article 48a for the purpose of ~~adapt~~revising the list of subjects to be included in the ~~test of theoretical knowledg~~assessments of professional competence referred to in paragraph 1 of this Article. When using such powers, the Commission shall take into account developments in auditing and the audit profession. , and in particular convergence that has been achieved by the profession, such as educational benchmarks based on learning outcomes and knowledge and international education standards relating to auditors.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 7

Directive 2006/43/EC
Article 14 – paragraph 1

1. The competent ~~authorit~~bodies referred to in Article 32 shall establish procedures for the approval of statutory auditors who have been approved in other Member States. Those procedures shall comply with Articles 11 and 12 of Directive 2005/36/EC and shall not go beyond the requirements contained in Articles 13 and 14 of that Directive.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 7

Directive 2006/43/EC
Article 14 – paragraph 2 – subparagraph 1

Member States shall have the option of offering the applicant the choice between an adaptation period as defined in point (g) of Article 3(1) of Directive 2005/36/EC and an aptitude test as defined in point (h) of that Article. For the purposes of this Article, Article 14(3) of Directive 2005/36/EC shall not apply.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 7

Directive 2006/43/EC
Article 14 – paragraph 2 – subparagraph 2

The adaptation period shall not exceed three years and shall be subject to an assessment of professional competence achieved in national law relating to audits.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 7

Directive 2006/43/EC
Article 14 – paragraph 3

3. The competent ~~authorit~~bodies referred to in Article 32 shall cooperate in view of achieving a convergence of the requirements of the adaptation period and the aptitude test. They shall enhance the transparency and predictability of the requirements. They shall cooperate with ESMA ~~and the competent authorities referred to in Article [XXX] Regulation [XXX] of [XXX]~~ in so far as such convergence relates to the statutory audits of public- interest entities.’.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 8

Directive 2006/43/EC
Article 15 – paragraph 1

~~In Article 15(1), the following subparagraph is added: ‘The public register shall be organized by the competent authority referred to in Article 32.’.~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 10 a (new)

Directive 2006/43/EC
Article 21 a (new)

10a. The following Article 21a is inserted: ‘Member States shall ensure that undertakings appoint the statutory auditors or the audit firm for a period of at least three years. Reappointments shall be permissible.’

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 11 a (new)

Directive 2006/43/EC
Article 25

11a. Article 25 is amended as follows: ‘Article 25 Quality assurance payment scheme (1) Member States shall be required to introduce a quality assurance payment scheme for the conduct of statutory audits. A quality assurance payment scheme shall comprise at least the following: (a) rules on the minimum number of hours to be spent on audits, depending on predetermined entity-specific factors such as the size of the entity, sector, turnover, balance sheet total and number of employees, and (b) rules on the minimum hours to be spent on the audit by statutory auditors. (2) Member States shall also lay down suitable rules to ensure that payments for statutory audits: (a) are not influenced or determined by the provision of additional services to the audited entity; (b) may not be made contingent on compliance with any conditions; (c) are appropriate. Member States may delegate this task to the competent body responsible for supervision.’

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 12

Directive 2006/43/EC
Article 26 – paragraph 1 – subparagraph 1

1. Member States shall ensure that statutory auditors and audit firms comply with international auditing standards when carrying out statutory audits as long as those standards are applied proportionately and are in conformity with the requirements of this Directive ~~and of Regulation XX/XX~~. The proportionate application of international auditing standards when carrying out statutory audits requires that the statutory auditor/audit firm must carry out the audit in a manner consistent with the circumstances of the entity being audited. In that connection the statutory auditor/audit firm shall be responsible for determining the nature and scope of the audit, and the way it is to be documented, using due discretion, on the basis of the scale and complexity of and the risks inherent in the audit remit.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 12

Directive 2006/43/EC
Article 26 – paragraph 3

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a for the purpose of amending the definition of international auditing standards in paragraph 2 of this Article. When using such powers, the Commission shall take into account any amendments brought to the ISAs by the IFAC, the opinion of the Public Interest Oversight Board on such amendments as well as any other developments in auditing and the audit profession.’Does not apply to English text.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 13 a (new)

Directive 2006/43/EC
Article 28 a (new)

13a. The following Article 28a is inserted: ‘Article 28a Additional report (1) The statutory auditor shall draw up a clear written report on the nature, scope and outcome of the audit. The report must first comment on the assessment of the situation of the entity or group drawn up by its legal representatives, focusing in particular on an assessment of the viability as a going concern and future development of the entity in the light of the management report, and, when auditing the group financial statements of parent entities, the viability as a going concern and future development of the group, in the light of the group management report, in so far as the audited documents and the management report or group management report make such an assessment possible. In addition, the statutory auditor must report on errors, instances of non-compliance with statutory provisions or facts identified in the course of carrying out the audit which could jeopardise the viability as a going concern of the audited entity or the group or seriously impair its development or which point to serious breaches of the law, the partnership agreement or the articles of incorporation by legal representatives or employees. (2) The main part of the audit report must include a statement as to whether the accounts and any other documents audited, the financial statements, the management report, the group financial statements and the group management report are consistent with the relevant statutory provisions and any additional relevant provisions of the partnership agreement or the articles of incorporation. It shall also contain details of any reservations which have not led to the submission of a qualified or an adverse audit opinion, where this is significant in the context of the supervision of the management and of the audited entity. The auditor shall also comment on whether the accounts as a whole give a true a fair view of the assets, financial position and profitability of the entity or group, in accordance with accepted accounting principles or other applicable accounting standards. Details shall also be provided of the material measurement bases employed and of the impact which changes in those measurement bases, including the exercise of recognition and measurement options, the application of management discretion or grooming transactions may have on the presentation of the assets, financial position and profitability. In that connection the items in the financial statements and group financial statements shall be broken down and explained in sufficient detail, if the relevant details are not given in the annex. The report shall state whether the legal representatives provided all requested explanations and documents. (3) The subject, nature and scope of the audit shall be outlined in a separate section of the audit report. Details shall also be given of the accounting and auditing principles applied. (4) The audit report shall also indicate the number of audit hours taken to perform the audit engagement, broken down by the hours worked by statutory auditors and those worked by other employees involved. Details shall also be given of the entity- specific factors identified by Member States in the quality assurance payment scheme referred to in Article 25(1)(a) as being significant for the calculation of the payment required. If, in drawing up the quality assurance payment scheme, a Member State has gone beyond the minimum requirements laid down in Article 25(1), the audit report shall outline the significant factors used to determine the level of payment in accordance with the quality assurance payment scheme in force in the Member State concerned. (5) If Member States stipulate that entities must set up an internal monitoring system designed to identify at an early stage developments which might jeopardise the viability of the entity as a going concern, the statutory auditor or the audit firm shall draw up an assessment, to be included in a separate section of the audit report, as to whether that monitoring system has been set up in an appropriate manner and meets its intended purpose. The report shall outline any measures required to improve the internal monitoring system. (6) The audit report shall contain a declaration of independence by the statutory auditor. (7) The statutory auditor shall sign the report and submit it to the body on whose behalf he or she is working.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 14 – point a – point i

Directive 2006/43/EC
Article 29 – paragraph 1 – point a

(i) point (a) is replaced by the following: ‘(a) the quality assurance system shall be governed by the competent authority referred to in Article 32 and organized in such a manner that it is independent of statutory auditors and audit firms.’;deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 14 – point a – point iii

Directive 2006/43/EC
Article 29 – paragraph 1 – subparagraph 1 a (new)

(iii) the following subparagraph is inserted after point (k): ’The competent authority referred to in Article 32 shall make available to interested parties, upon their request, the report referred to in point (g) of the first subparagraph. The competent authority shall make sure that the report disclosed does not undermine the commercial interests of the audited entity under review, including its industrial and intellectual property.’;deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 14 a (new)

Directive 2006/43/EC
Article 30 – paragraph 3

14a. Article 30(3) is amended as follows: ‘Member States shall provide that measures taken in respect of, or sanctions imposed on, statutory auditors or audit firms in cases of public relevance are disclosed appropriately to the public, with details of the nature of the offence and the identity of those responsible, provided it is concluded in an assessment of the individual case that the public interest in disclosure outweighs the need to protect the personal dignity of those affected by the measure or sanction. The assessment in each case shall have regard to the fundamental rights laid down in the EU Charter of Fundamental Rights, in particular the right to respect for private and family life and the right to the protection of personal data. Individual details shall not be published where identification of the persons involved would cause them disproportionate damage or where the disclosure would seriously jeopardise the stability of the financial markets. This shall not affect the discretion of the competent authorities to publish details of the measures and sanctions on the basis of anonymity. Sanctions should include the possibility of the withdrawal of approval.’

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point a

Directive 2006/43/EC
Article 32 – paragraph 1

(a) paragraph 1 is replaced by the following: ‘1. Member States shall designate a competent authority responsible for the public oversight of statutory auditors and audit firms based on the principles set out in paragraphs 2 to 7.’;deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point b

Directive 2006/43/EC
Article 32 – paragraph 3

(b) paragraph 3 is replaced by the following: ‘3. The competent authority may allow non-practitioners who are knowledgeable in the areas relevant to statutory audit to be involved in the governance of the public oversight system, provided that they are selected in accordance with an independent and transparent nomination procedure. Practitioners shall not be allowed to be involved in the governance of the public oversight system.’;deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point c

Directive 2006/43/EC
Article 32 – paragraph 4

~~(c) in paragraph 4, the introductory sentence is replaced by the following: ‘The competent authority shall have the ultimate responsibility for the oversight of:’;~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point d – introductory part

Directive 2006/43/EC
Article 32 – paragraph 5

(d) in paragraph 5 ~~is replaced by the following~~, the following second subparagraph is added:

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point d

Directive 2006/43/EC
Article 32 – paragraph 5 – subparagraph 1

5. The competent authority shall have the right, where necessary, to initiate and conduct investigations in relation to statutory auditors and audit firms and the right to take appropriate action. It shall have adequate resources to initiate and conduct such investigations.deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point d

Directive 2006/43/EC
Article 32 – paragraph 5 – subparagraph 2

In order to carry out its tasks under this Directive, the competent authority shall have access to any document in any form held by statutory auditors or audit firms and to receive and retain a copy thereof. It shall also have the right to demand information from any person and if necessary to summon and question a person with a view to obtaining informat(Does not affect English version.)

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 15 – point e

Directive 2006/43/EC
Article 32 – paragraph 6

~~(e) paragraph 6 is replaced by the following: ‘6. The competent authority shall be transparent. This shall include the publication of annual work programmes and activity reports’.~~deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 16

Directive 2006/43/EC
Article 32 a

16. The following Article 32a is inserted: ‘Article 32a Delegation of tasks Member States may allow the competent authority referred to in Article 32 to delegate tasks to other authorities or bodies designated by law only as regards the approval and registration of statutory auditors and audit firms. Any execution of tasks by other authorities or bodies shall be expressly delegated by the competent authority. The delegation shall specify the delegated tasks and the conditions under which they are to be carried out. The authorities or bodies shall be organized in such a manner that there are no conflicts of interest. The ultimate responsibility for supervising compliance with this Directive and the implementing measures adopted pursuant thereto shall lie with the delegating competent authority. Member States shall inform the Commission and the competent authorities of the other Member States of any arrangement entered into with regard to the delegation of tasks, including the precise conditions for regulating the delegations.’deleted

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 17 – point a

Directive 2006/43/EC
Article 36 – paragraph 3

3. Paragraph 2 shall not prevent competent authorities from exchanging confidential information. Information thus exchanged shall be covered by the obligation of professional secrecy, to which persons employed or formerly employed by competent authorities are subject. The obligation of professional secrecy shall also apply to any other person to whom the competent authorities have delegated tasks in relation to the purposes set out in this Directive.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 19

Directive 2006/43/EC
Chapter X

~~19. Chapter X is~~ deleted.

2012/11/14
Committee: JURI

Alexandra THEIN

Proposal for a directive
Article 1 – point 19 d (new)

Directive 2006/43/EC
Article 42 – paragraph 1 – point b

19d. Point (b) of Article 42(1) is deleted.

2012/11/14
Committee: JURI

Alexandra THEIN, Jürgen CREUTZMANN

Proposal for a directive
Article 1 – point 19 f (new)

Directive 2006/43/EC
Article 42 a

19f. The following Article 42a is inserted: ‘Article 42a Prohibition of the provision of non-audit services 1. In addition to the provisions of Articles 22 and 24, Member States shall ensure the application of the provisions set out in the following paragraphs. 2. A statutory auditor or an audit firm carrying out statutory audit of public- interest entities may provide to the audited entity, to its parent undertaking and to its controlled undertakings statutory audit services, audit-related and other assurance services subject to prior approval of the audit committee and as long as these do not pose a threat to independence that cannot be reduced to an acceptable level by the application of safeguards. Where the statutory auditor belongs to a network, a member of such network may provide to the audited entity, to its parent undertaking and to its controlled undertakings statutory audit services, audit-related and other assurance services subject to prior approval of the audit committee and as long as these do not pose a threat to independence that cannot be reduced to an acceptable level by the application of safeguards. 3. For the purposes of this Article, audit- related and other assurance services shall mean in particular: (a) the audit or review of interim financial statements; (b) providing assurance on corporate governance statements; (c) providing assurance on corporate social responsibility matters; (d) providing assurance on or attestation of regulatory reporting to regulators of financial institutions beyond the scope of the statutory audit and designed to assist regulators in fulfilling their role, such as on capital requirements or specific solvency ratios determining how likely an undertaking will be to continue meeting its debt obligations; (e) providing certification on compliance with tax requirements, preparation of tax declarations, advice on indirect taxes, payroll tax, transfer prices, customs duties and public support measures, support regarding tax inspections and tax authority enquiries; (f) the audit of technology systems, internal control or risk management procedure related to the preparation and/or control of financing information included in the financial statements, and advice on risk; (g) providing assurance on the implementation and further development of electronic data processing systems; (h) the audit of occupational pension schemes and pension obligations; (i) any other statutory duty related to audit work imposed by Union and/or national legislation to the statutory auditor or audit firm; (j) providing comfort letters for investors in the context of the issuance of an undertaking’s securities, and fairness opinions or contribution-in-kind reports. 4. A statutory auditor or an audit firm carrying out statutory audit of public- interest entities shall not directly or indirectly provide to the audited entity, to its parent undertaking and to its controlled undertakings non-audit services. Where the statutory auditor belongs to a network, no member of such network shall provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union any non- audit services. For the purposes of this Article, ‘non- audit services’ entailing conflict of interest in all cases shall mean: (i) consultancy services unrelated to the statutory audit; tax consultancy and legal services that go beyond the identification of structural options and have a more than indirect or insignificant impact on how the asset, financial and income situation is represented in the annual financial statement; legal services, including those for the settlement of disputes; general management and other advisory services; (ii) book keeping and preparing accounting records and financial statements; (iii) designing or implementing technology systems, internal control or risk management procedure related to the preparation and/or control of financing information included in the financial statements and advice on risk; (iv) valuation services; (v) actuarial services; (vi) designing or implementing financial information technology systems; (vii) participating in the audit client’s internal audit and the provision of services related to the internal audit function; (viii) broker or dealer, investment advice, or investment banking services. (ix) human resources services, including recruiting senior management; (x) legal and tax services that go beyond the presentation of alternatives; tax services for natural persons; 5. Where a member of the network to which the statutory auditor or audit firm of a public-interest entity belongs provides non-audit services to a third-country- based enterprise controlled by the audited entity, the statutory auditor/ audit firm shall assess whether his, her or its independence is affected thereby. If his, her or its independence is affected, the statutory auditor or the audit firm shall apply safeguards in order to mitigate the threats caused by such provision of services in a third country. The statutory auditor or the audit firm may continue to carry out the statutory audit of the public- interest entity only if he, she or it can prove that such provision of services does not affect his, her or its professional judgement and the audit report. Being involved in the decision-taking of the audited entity and the provision of non-audit services shall be considered as affecting such independence in all cases. The statutory auditor or the audit firm may consult the competent authority for an opinion on this issue. 6. Competent authorities may give notice of further services and/or activities which it considers impart a conflict of interest and shall notify ESMA, EIOPA, EBA and, where appropriate, the ESRB.’

2012/11/14
Committee: JURI

Alexandra THEIN, Jürgen CREUTZMANN

Proposal for a directive
Article 1 – point 20

Directive 2006/43/EC
Article 43 a – paragraph 2

~~When undertaking quality assurance reviews, the competent authorities shall take account of the proportionate application of the auditing standards.~~(Does not affect the English version.)

2012/11/14
Committee: JURI

Alexandra THEIN, Jürgen CREUTZMANN

Proposal for a directive
Article 1 – point 21 – point a

Directive 2006/43/EC
Article 45 – paragraph 1 – introductory wording

1. The competent authorities of a Member State shall, in accordance with Article 15, 16 and 17, register every third-country auditor and audit entity that provides an audit report concerning the annual or consolidated accounts of an undertaking incorporated outside the Union whose transferable securities are admitted to trading on a regulated market of that Member State within the meaning of point 14 of Article 4(1) of Directive 2004/39/EC, except when the undertaking is an issuer exclusively of outstanding debt securities for which one of the following applies:(Does not affect the English version.)

2012/11/14
Committee: JURI

Alexandra THEIN, Jürgen CREUTZMANN

Proposal for a directive
Article 1 – point 23 – point c

Directive 2006/43/EC
Article 47 – paragraph 5

‘5. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a for the purpose of defining the exceptional cases referred to in paragraph 4 of this Article in order to facilitate cooperation between competent authorities.’(Does not affect the English version.)

2012/11/14
Committee: JURI