The audit framework Essay Example | Topics and Well Written Essays - 3000 words

The audit framework - Essay ExampleMore boil down upon ensuring the independence of the auditors is do. Limitations and restrictions upon the non-audit services provided by the auditors shall remove much of the threat to the independence of the auditors a persistent with the alterations in the mandatary audit rotation. Making it more dynamic and competitive makes the audit food market in the European league much efficient. Encouraging joint audits shall be able to overcome the dominance of the big fours in the market and thus shall increase the competition in the market. The harmonization of the audit standards in the European Union shall be expanding the audit market in the European Union. With the enhanced supervision of the audit sector and much reforms made in the audit sector it shall be affecting various stakeholders and its impact along with the difficulties are elaborated.The long awaited audit reforms dedicate been completed by the EU however now awaits their practica l deduction it would reveal their impact over the companies. Audit reforms are move that come after the financial crisis that corporates earn faced and proximity seen in the relation of the auditors to their clients. Reforms are not only the challenge for the audit firms except also for the companies, they would be implyd to adapt to new regulations. Some of the factors that would deeply affect companies that undergo are discussed as followEven changing of engagement partner was considered auditor rotation however changed reforms require change in audit firm maximum after 24 years including extension period. Companies would have to be more vigilant in their choice of auditor as relationship would be of extra period (more than previous 3 years) and non-audit services would be restricted. Changing of auditors before 10 years would not be appreciated reforms do not aim to increase the competition in the audit market thus the replacement during first