The main role of the Internal Market and Services Directorate General (DG MARKT) is to coordinate the European Commission’s policy on the European Single Market and to seek the removal of unjustified obstacles to trade, in particular in the field of services and financial markets.

The European Commission is considering the adoption of the International Standards on Auditing (ISAs) of the International Auditing and Assurance Standards Board (IAASB) for statutory audits required by Community law.

The Audit Directive was enacted with the objective of enhancing the quality of statutory audits in the EU. It empowers the Commission to adopt implementing rules at European level subject to the following conditions:

  • They have been developed with proper due process, public oversight and transparency, and are generally accepted internationally.
  • They contribute a high level of credibility and quality to the annual or consolidated accounts.
  • They are conducive to the European public good.

The DG MARKT has now published a consultation paper on the adoption of ISAs on auditing. The principal issue covered by the consultation is whether the recently revised and clarified ISAs developed by the IAASB fulfil the above conditions and whether their adoption at European level would bring sufficient benefits.

The consultation is aimed not just at auditors of companies, but also other interest groups including the users of audit reports (investors, analysts, banking and insurance industry, companies, public authorities, regulators and academics).

The deadline for comments on the consultation is 15 September 2009.

View Consultation on the adoption of international standards on auditing, 22 June 2009