Auditors in the European single market
Article Abstract:
The European Commission has issued its Green Paper examining the role of statutory auditors in Europe. European Commissioner Mario Monti hopes that the paper would push the European auditing profession towards the highest quality and best standards in the world. The paper reports the results of an EC study investigating the barriers to practice of the profession in the region, plus the inputs of various interested parties, including the Federation des Experts Comptables Europeens (FEE). The FEE wholeheartedly supports the Commission's pursuit of excellence for audit services and has expressed its willingness to work with the administrative body to achieve this goal. With regard to the statutory role of European auditors, the FEE believes that practitioners should be allowed to continue performing their tasks within a general legal framework while giving them the freedom to determine the small details of how audits should be done.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1996
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Article Abstract:
The client acquisition process is an important part of any auditing practice. Practitioners must select their clients very carefully so that they will not become burdened by high-risk, unprofitable customers and end up with a poor-quality client portfolio. There are several factors that auditors need to consider before accepting an engagement. One of these is whether they find the potential client desirable after reviewing its background, reason for changing accountants and fee expectation. Another consideration is whether the auditing practice has the ethical, logistical and technical abilities to serve the new client. A third issue that has to be taken into account is the importance of communicating with the new client's previous accountants. Finally, the terms and conditions of the engagement should be put in writing to avoid misunderstandings. Other considerations are discussed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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