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OROC Congress Ethics and Accountability

OROC Congress Ethics and Accountability. Lisbon, 22 October 2010 Hilde Blomme FEE Director of Practice Regulation. About FEE. 43 professional institutes of more than 500.000 accountants all contributing to a more efficient, transparent and sustainable European economy

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OROC Congress Ethics and Accountability

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  1. OROC CongressEthics and Accountability Lisbon, 22 October 2010 Hilde Blomme FEE Director of Practice Regulation

  2. About FEE • 43 professional institutes of more than 500.000 accountants all contributing to a more efficient, transparent and sustainable European economy • 32 European countries, including all 27 EU MS

  3. FEE: Representing the Profession and Adding Value to Members With PCAOB, SEC, etc. With EC, EP, EU Council & Committees With IFAC & its Boards: IAASB, IESBA, IAESBA, CAGs, IPSASB, etc. Inform, advise & influence Facilitate consensus between Catalyst in Europe institutes, accountancy firms (big & small) EU & intl. regulation, policy standard setting, etc.

  4. Areas of Activities Financial Reporting Auditing Sustainability Accounting Ethics Qualification and Market Access Insurance Company Law Corporate Governance SMEs-SMPs Banks Public Sector Taxation And more…

  5. Overview: Europe and Ethics • IESBA Code of Ethics in European Countries • European Commission Green Paper on Audit Policy • FEE Discussion Paper on Integrity in Professional Ethics • FEE Comparison Project on Auditor Independence

  6. IESBA Code of Ethics in European Countries

  7. IESBA Code of Ethics in European Countries

  8. European Commission Green Paper on Audit Policy PROPOSALS RE INDEPENDENCE

  9. Green Paper • Proposals re: • Role of auditors • Governance and independence audit firms • Supervision • Concentration and market structure • Creation European Market • Simplification: SMEs & SMPs • International cooperation

  10. Proposals to Enhance Independence of Auditors • Appointment and remuneration of auditors by third party, not company (shareholders) • Mandatory audit tendering • Mandatory audit firm and partner rotation • Prohibition provision non-audit services (NAS) (for all audits?) • Pure audit firms • Limit proportion fees from 1 audit client • European “qualification” passport for auditors with common independence rules (IESBA Code?) • Permit provision of NAS to SMEs, like tax, HR, access to credit, certain accounting

  11. FEE Discussion Paper on Integrity in Professional Ethics

  12. Integrity in Professional Ethics • FEE Discussion Paper • issued in September 2009 for comments by 31 January 2010 • 30 response letters received • Analysis of responses being finalised • To promote debate • Integrity is the core principle of professional behaviour, but the hardest to understand and instil in people • More focus on guidance and training on integrity rather than independence and objectivity • What does it mean?

  13. Integrity is more than Words... BEHAVIOUR Personal Professional

  14. Embedding Organisational Integrity Leadership Strategy Policies Information Culture Be honest and truthful Awareness Deal fairly Predictability Comply with laws Transparency Promote public interest Show consistency Long-term view Be open-minded People Take corrective action

  15. FEE Comparison Project on Auditor Independence • Relevance of the Code for FEE and FEE Member Bodies • The Case for a Common Code

  16. Discussion and Questions

  17. Standing for trust and integrity Visit us @ www.fee.be

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