Auditors working in various countries of the EU do not utilize common accounting standards, owed to their key roles in the market and the risk that there could be more cases like the Arthur Anderson´s.
So some of the four major accounting firms that divvy up the transnational market could disappear. It is a baffling legal situation that the European auditors are the sole firms that handle national auditing.
Brussels is proposing that firms operate across all of Europe. The communal norm would force auditors of investment companies to inform wide-coverage auditing authorities each year and to answer questions related to security and risk management.
The European Commission does not have information about whether this has been completed throughout the crisis. Further, the current homogenization would change competitive incentives such that the small companies are not disadvantaged.
