45 Amendments of Paulo RANGEL related to 2011/0359(COD)
Amendment 206 #
Proposal for a regulation
Recital 11
Recital 11
(11) The provision of services other than statutory audit to audited entities by statutory auditors, audit firms or members of their networks may compromise their independence. Therefore, it is appropriate to require the statutory auditor, the audit firm and the members of their network not to provide non-audit services to their audited entities. The provision of non- audit services by an audit firm to a company would prevent that audit firm from carrying out statutory audit of that company, thus resulting in a reduction of the audit firms available to provide statutory audit, in particular with regard to the audit of large public-interest entities where the market is concentrated. As a result, in order to secure that a minimum number of audit firms is able to provide audit services to large public- interest entities, it is appropriate to request that audit firms of significant dimension focus their professional activity on the carrying out of statutory audit and are not allowed to undertake other services unconnected to their statutory audit function such as consultancy or advisory servicgiven services to their audited entities.
Amendment 228 #
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 the statutory 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 auditorgradual rotation should be ensured 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 241 #
Proposal for a regulation
Recital 45
Recital 45
(45) In order to ensure legal certainty and the smooth transition to the regime introduced by this Regulation, it is important to introduce a transitional regime regarding the entry into force of the obligation to rotate audit firms, the obligation to organise a selection procedure for the choice of audit firm and the conversion of audit firms into firms that only provide audit services.
Amendment 267 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 280 #
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 may provide to the audited entity, to its parent undertaking and to its controlled undertakings statutory audit services and related financial audit services, and non-audit services not prohibited under this Article.
Amendment 285 #
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 2
Article 10 – paragraph 1 – subparagraph 2
Where the statutory auditor belongs to a network, a member of such a network may provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union statutory audit services or related financial audit services and non-audit services not prohibited under this Article.
Amendment 307 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 1
Article 10 – paragraph 3 – subparagraph 1
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 prohibited non-audit services.
Amendment 311 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Where the statutory auditor belongs to a network, no member of such a network shall provide to the audited entity, to its parent undertaking and to its controlled undertakings within the Union any prohibited non- audit services.
Amendment 314 #
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 319 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point i
Article 10 – paragraph 3 – subparagraph 3 – point a – point i
Amendment 322 #
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 and implementing internal control or risk management proceduresystems related to the preparation and/or control of financing information included in the financial statements and advice on riskconstituting a significant part of the internal review of the audited entity’s financial reporting or giving rise to information significant to the accounting records or of statutorily audited financial statements;
Amendment 327 #
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 contribuservices for the valuation of assets or financial liabilities constituting materially relevant amounts in the context of financial statements and whose valuation- in-kind reportsvolves a high degree of subjectivity;
Amendment 336 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
Article 10 – paragraph 3 – subparagraph 3 – point a – point vi
(vi) designing and implementing financial information technology systems for public- interest entities as referred to in Article 2(13)(b) to (j) of Directive 2006/43/EC, except where the audited entity is responsible for the internal control system as a whole or the service is provided in accordance with specifications which the audited entity has laid down;
Amendment 339 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
Article 10 – paragraph 3 – subparagraph 3 – point a – point viii
Amendment 358 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
Article 10 – paragraph 3 – subparagraph 3 – point b – point i
(i) human resources services, including recruiting related to senior management;
Amendment 361 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point ii
Article 10 – paragraph 3 – subparagraph 3 – point b – point ii
Amendment 364 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point iii
Article 10 – paragraph 3 – subparagraph 3 – point b – point iii
Amendment 365 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 – point b – point iv
Article 10 – paragraph 3 – subparagraph 3 – point b – point iv
Amendment 368 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3 a (new)
Article 10 – paragraph 3 – subparagraph 3 a (new)
A statutory auditor or audit firm may provide non-audit services other than services prohibited under paragraph 3 of this Article where the provision of those services has been approved by the audit committee and the competent authority has not exercised its power to prohibit the provision of the services in question.
Amendment 371 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4
Article 10 – paragraph 3 – subparagraph 4
Amendment 378 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 5
Article 10 – paragraph 3 – subparagraph 5
Amendment 387 #
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) shall be considered as affecting such independence in all cases.
Amendment 390 #
Proposal for a regulation
Article 10 – paragraph 4 – subparagraph 4
Article 10 – paragraph 4 – subparagraph 4
Amendment 394 #
Proposal for a regulation
Article 10 – paragraph 5
Article 10 – paragraph 5
Amendment 411 #
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. The Commission shall be empowered to adopt delegated acts in accordance with Article 68 for the purpose of adapting the list of related financial audit services referred to in paragraph 2 and the list of prohibited non-audit services referred to in paragraph 3 of this Article. When using such powers, the Commission shall take into account developments in auditing and the audit profession.
Amendment 419 #
Proposal for a regulation
Article 11 – paragraph 4 – subparagraph 1 – point c
Article 11 – paragraph 4 – subparagraph 1 – point c
(c) request permission from the audit committee to provide the non-audit services referred to in Article 10(3)(b)(i) and (iinon-audit services other than non-audit services prohibited under Article 10(3) to the audited entity;
Amendment 420 #
Proposal for a regulation
Article 11 – paragraph 4 – subparagraph 1 – point d
Article 11 – paragraph 4 – subparagraph 1 – point d
Amendment 447 #
Proposal for a regulation
Article 22 – paragraph 2 – point q
Article 22 – paragraph 2 – point q
(q) declare that the prohibited non-audit services referred to in Article 10(3) were not provided and that the statutory auditor(s) or the audit firm(s) remained completely independent in conducting the audit. Where the statutory audit was carried out by an audit firm, the report shall identify each member of the audit engagement team and shall state that all members remained completely independent and had no direct or indirect interest in the audited entity;
Amendment 448 #
Proposal for a regulation
Article 22 – paragraph 2 – point r
Article 22 – paragraph 2 – point r
(r) indicate the non-audit services other than those referred to in Article 10(3)(b)(i) and (ii) that the audit committee allowed the statutory auditor or the audit firm to provide to the audited entity;
Amendment 449 #
Proposal for a regulation
Article 22 – paragraph 2 – point s
Article 22 – paragraph 2 – point s
Amendment 470 #
Proposal for a regulation
Article 23 – paragraph 2 – point a
Article 23 – paragraph 2 – point a
(a) include a declaration of independence as provided for in point (q) of Article 22(2);
Amendment 505 #
Proposal for a regulation
Article 26 – paragraph 2 – subparagraph 1
Article 26 – paragraph 2 – subparagraph 1
The annual financial report and the annual income statement shall show the total turnover divided into fees from the statutory audit of annual and consolidated financial statements of public-interest entities and entities belonging to a group of undertakings whose parent undertaking is a public-interest entity, fees from the statutory audit of annual and consolidated financial statements of other entities and fees charged for related financial audit services as defined in Article 10(2)nd non-audit services, with the exception of prohibited non-audit services.
Amendment 528 #
Proposal for a regulation
Article 31 – paragraph 5 – point f
Article 31 – paragraph 5 – point f
f) authorise, on a case by case basis, the provision by the statutory auditor or audit firm of the non-audit services referred to in Article 10(3)(b)(i) and (ii) of this Regulation to the audited entity.
Amendment 566 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 2
Article 33 – paragraph 1 – subparagraph 2
Amendment 578 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 3
Article 33 – paragraph 1 – subparagraph 3
Amendment 591 #
Proposal for a regulation
Article 33 – paragraph 1 – subparagraph 4
Article 33 – paragraph 1 – subparagraph 4
Amendment 604 #
Proposal for a regulation
Article 33 – paragraph 2
Article 33 – paragraph 2
Amendment 613 #
Proposal for a regulation
Article 33 – paragraph 3
Article 33 – paragraph 3
Amendment 686 #
Proposal for a regulation
Article 46 – paragraph 3 – subparagraph 1 – point e
Article 46 – paragraph 3 – subparagraph 1 – point e
Amendment 734 #
Proposal for a regulation
Article 70
Article 70
Amendment 738 #
Proposal for a regulation
Article 72 – paragraph 3
Article 72 – paragraph 3
However, Article 32(7) shall apply from […] [the date of the entry into force of the Regulation] and Article 10(5) shall apply from […] [3 years after the entry into force of the Regulation].
Amendment 742 #
Proposal for a regulation
Annex 1 – part I – subpart A – point 5
Annex 1 – part I – subpart A – point 5
Amendment 743 #
Proposal for a regulation
Annex 1 – part I – subpart A – point 6
Annex 1 – part I – subpart A – point 6
6. The statutory auditor or audit firm infringes Article 10 by providing services other than statutory audit services which are prohibited or related financial audit services to the audited entity.
Amendment 744 #
Proposal for a regulation
Annex 1 – part I – subpart E – point 23
Annex 1 – part I – subpart E – point 23
Amendment 745 #
Proposal for a regulation
Annex 1 – part II – subpart A – point 3
Annex 1 – part II – subpart A – point 3