Europe: Commission's proposals for reform of the audit market considered by the Legal Affairs Committee

In 2011 the European Commission published proposals for the reform of the audit market: see here. These were the subject of debate yesterday by the Legal Affairs Committee of the European Parliament. The Commission proposed mandatory rotation of audit firms every six years (nine if there were joint auditors). The Legal Affairs Committee decided that six years was too short and has proposed a maximum period of fourteen years (or twenty five years if certain conditions are met): see here. The Committee also decided, by a majority vote, to enter into negotiations with the European Council in order to agree a common text in respect of the Commission's legislative proposals.