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EU: Two-year deadlock ends in auditor rotation legislation agreement

 |  October 4, 2013

Reports say EU member states reached an agreement Friday that allows the nations to begin talks with the European Parliament regarding legislation that would require mandatory rotation of accountants, ending a two-year deadlock on the issue, say reports.

Sources told reporters that the EU took one step closer to a law that would mandate companies to rotate their auditors in a fixed cycle of time in efforts to jolt market competition, which has slowed as some companies stick with the same accountant for decades.

According to reports, the member states have come to an agreement that would require auditor rotation every 15 years, or every 20 years for some companies that qualify.

Parliament has supported the notion that there should be a legal cap of 25 years for companies to keep the same accountant.

Full Content: Reuters

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