With regard to the scrutiny of EU proposals, there are two proposals recommended for further scrutiny, COM (2011) 778, a proposed directive on the statutory audits of annual accounts and consolidated accounts, and COM (2011) 779, a proposed regulation regarding the statutory audit of public interest entities. These are linked and they are deemed to be significant for Ireland and all other member states. The global financial crisis highlights the weakness of auditing in the financial sector and the proposals are part of the regulatory reform measures in the EU financial sector. The purpose of the proposed measures is to strengthen the independence of auditors, enhance audit quality, increase competitiveness in the audit market and strengthen the internal market for audit services.
Although Ireland supports the measures in principle, the proposals would have implications for it. The negotiating approach to the proposals involves establishing that the specific measures proposed are both appropriate and proportionate and will have the desired outcome. Ireland will seek to have modifications made to the proposals to meet these objectives should this be deemed necessary. It is proposed that the proposals warrant further scrutiny. Is that agreed?
