Brussels (Jan. 8, 2004) -- In the wake of high-profile scandals such as Parmalat and Vivendi, the European Commission plans to propose a series of more stringent measures on auditing and corporate governance.

The commission’s measures involve strengthening auditor oversight, including a measure that would make a single auditor fully accountable for all phases of a client’s accounts.

The commission also put forth a conflict-of-interest proposal that would ban auditors from being involved in any management decisions of its audit clients.

The governing body also called for greater transparency and disclosure with regard to both financials and structures of client companies.

Meanwhile, the European Federation of Accountants called for the creation of a European body to coordinate enforcement in preparation new international accounting standards in 2005.

-- WebCPA staff

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