Regulatory Alerts2022-10-19
Cooperation in the execution of statutory audits requires safeguards
The Dutch Authority for the Financial Markets (AFM) conducted an exploratory study into cooperation among audit firms to strengthen statutory audit quality. The report identifies three main opportunities for cooperation: achieving economies of scale, building specialized expertise, and reducing independence risks. It highlights that extensive cooperation models involving external staff entail quality risks that must be mitigated through specific safeguards regarding competence, independence, and uniform quality management systems.
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