The Professional Oversight Board (POB) issued on August 11, 2006, a Consultation Document, on the information which the auditors of public interest entities , particularly in UK, should be required by law to publish.
The Consultation Document will form the basis for the development of regulations to give effect to the transparency reporting in the revised European Union’s Eighth Company Law Directive “EU 8th” on the regulation of auditors, which was agreed upon earlier this year.
Transparency reports should include information on the processes and procedures by which the firm ensures audit quality and auditor independence with respect to the e firm’s structure, governance and network arrangements, and the way in which the firm remunerates it’s partners.
Paul George, Director of POB Said “Transparency reports have a valuable role to play in encouraging audit quality. They can help investors to understand the strengths of a particular audit firm. For example, on a firm’s processes and practices for audit quality, provide an incentive for all within the firm to live up to both the spirit and letter of what the firm has promised publicly.
POB contributes to the achievement of the financial reporting own fundamentals aim of promoting confidence in corporate reporting and governance.
For more information please visit the following website: www.frc.org.uk