The European Parliament (EP) will vote tomorrow on the proposed EU audit reform agreed in trialogue negotiations between representatives of the European Parliament, the Council of the European Union (EU Council) and the European Commission in December last year and endorsed by Juri, the EP’s Committee on Legal Affairs, in January.
However some political groups are still opposing the reform in its current state. The Group of Progressive Alliance of Socialists & Democrats in the European Parliament (S&D) has tabled oral amendments to the reform draft.
"We believe that this reform is not tough enough," S&D advisor legal affairs committee Melanie Köller said. "We asked for shorter rotation period, as well as lower cap on the fees earned for non-audit services rendered to an audit client."
She said that the S&D proposals are backed by the European Green Party, but because the agreement was already approved at committee level, the sentiment is that the amendments will be disregarded and the EP will vote in favor of the reform as agreed in the trialogue.
There are no debates at this stage, the EP is asked to vote in favor or against the proposed reform and it can approve some or all of the amendments tabled.
If the EP votes in favor the reform, it will then go to the EU Council to be rubber stamped.
If the EP votes against the reform and /or some amendments are approved then the dossier goes back to trialogue to seek a new agreement.
Profession braces for EU audit reform with mixed expectations