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EU: Skepticism hits Parliament-approved audit reform

By  |  January 23, 2014

While the European Parliament approved of draft reforms aimed at overhauling a stagnant auditing industry, reports say the efforts are weighed down by skepticism over how effective the legislation will be.

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    Lawmakers cleared the draft reform package this week that aims to break the dominance of the so-called Big Four auditors – PwC, Deloitte, Ernst&Young and YPMG – that have been found to face very little competition.

    The auditors were under harsh criticism following the 2008 financial crisis for improperly auditing US investment banks.

    While the EU has suggested that companies must change auditors at least once every decade, skeptics are not convinced that the measures will amount to significant competition in the industry

    German lawmaker Sven Giegold, for one, says that even after the legislation, the Big Four will maintain its dominance.

    Full Content: EU Observer

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