Government maintains tight rules on auditing of companies – Digital Journal

 Tighter supervision and new rules for audit firms were today defended by the Finance Minister in Parliament, but the vote was postponed to next week for not having completed the debate.
 

The draft of the Government bill, which intends to approve the legal regime of audit supervision and the statutory audit of annual accounts and consolidated accounts of companies, it was rated by Maria Luís Albuquerque as ” a significant step in strengthening financial stability, “contributing to a” special regime more demanding and specific inspection rules for the activity “of financial institutions.

One of the most significant amendments proposed by the Government is the delivery of supervision over the auditors to the Portuguese Securities Market Commission (CMVM), and “quality control passes to be done” by the institution led by Carlos Tavares.

Among the points highlighted by Finance Minister says the maximum limit of ten years for an audit remains with a client, forcing a turnover and limiting the provision of non-audit services if any conflict of interest.

Although Maria Luís Albuquerque have noticed that the proposal “introduces higher penalties,” the opposition was not satisfied with the intentions of the executive, considering it could have gone much further in the rules of conflict of interest and that, unlike introduced new rules that are not contained in Community policy.

Both PS as PCP and the Left Bloc (BE) asked why was extended to statutory exemption accounts for private companies, considered by the opposition as a sign contrary to the tightening of supervision.

The minister said that in relation to private companies there was an exemption enlargement, but on the contrary, to public limited companies tightened the mesh, being these the most covered by supervision

Digital Diary with Lusa

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