Publication

5 February 2001

The conceptual approach to protecting auditor independence

February 2001

The European Commission will issue in the near future a recommendation on statutory auditors’ independence entitled: ‘Statutory Auditors’ Independence in the EU: A set of fundamental principles’. Although not legally binding, it is expected that member states and individual professional bodies will amend their laws and ethical codes so as to meet the terms of the Recommendation.

In 1998 the European accounting profession, through FEE, issued a policy paper called Statutory Audit Independence and Objectivity, which sets out a Common Core of Principles concerning independence issues. FEE has developed a conceptual approach considering the different kinds of threats that arise with respect to statutory audit independence and objectivity and the possible safeguards, including prohibitions where necessary, to offset these threats. This approach has contributed to the European Commission’s Committee on Auditing in developing a European set of fundamental principles for the statutory auditors’ independence and the Commission’s proposed recommendation adheres to the spirit of the FEE framework conceptual approach.

A very similar approach has been used by the Ethics Committee of the International Federation of Accountants (IFAC) in its proposed current draft revision of the section on independence in its Code of Ethics for Professional Accountants.

In order to foster understanding of the conceptual approach to the setting and enforcement of ethical guidance in the current international debate on auditor independence and to explain the preference of a conceptual approach in comparison with a mere rules based approach, the Ethics Working Party of FEE has prepared an additional paper: ‘The conceptual approach to protecting auditor independence’. We hope that this paper will be of use to you in your thinking, discussions on independence matters and the evolution towards a conceptual approach.

Position Paper

 

Related content

BlogAccountants and ethics: promoting trust in the public sector

8 September 2022

Consultation responseIESBA’s survey on its future strategy and workplan

6 July 2022

Consultation responseIESBA’s proposed revisions to the Code on engagement team and group audits definition

31 May 2022

PublicationNon-audit services

30 May 2022

PublicationWar in Ukraine – what European accountants need to know

9 March 2022

PublicationSupply chain sustainability assessment

28 January 2022

Consultation responseIAASB’s survey consultation: work plan for 2022‒2023

25 August 2021

Consultation responseIESBA’s proposed revisions to the definitions of listed entity and public interest entity in the...

5 May 2021

Podcast Ethics, digitalisation and accounting

16 December 2020

PublicationHow do multidisciplinary teams contribute to audit quality?

24 June 2020

Consultation responseIESBA’s proposed revisions to the fee-related provisions of the code

10 June 2020

Consultation responseIESBA’s proposed revisions to the non-assurance services provisions of the code

10 June 2020

Consultation responseIESBA’s exposure draft on proposed revision to the code addressing the objectivity of engagement quality...

7 April 2020

EventSustainable Finance: What comes before reporting?

29 January 2020

BlogAccountants can change the world

23 January 2020

Stories from PracticeDeveloping a values-driven workplace in Romania

6 January 2020

Consultation responseIESBA Exposure Draft on Proposed Revisions to the Code to Promote the Role and Mindset

4 November 2019

PublicationEU Directive on Whistleblower protection

7 October 2019

Stories from practiceTo rebuild trust in auditors, we need the courage to speak up

7 October 2019

Team memberHarun Saki

22 July 2019

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?