Tougher audits and tax rules on horizon

In the USA, attention is focusing on a tax loophole that is costing the US and other governments billions of dollars each year.

The European Commission, meanwhile, is looking to shake-up the world of company audits.

The ‘Big Six’ accounting firms, which have become the ‘Big Four’ under existing legislation regime, might be forced to give up their consulting business. In addition, companies with balance sheets greater than €1bn would be forced to hire two audit firms, at least one of which would have to be outside the Big Four.

The aims — to reduce conflicts of interest, and make audits more incisive and reliable.

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