Article 32
Principles of public oversight
1. Member States shall organise an effective system of public oversight for statutory auditors and audit firms based on the principles set out in paragraphs 2 to 7.
2. All statutory auditors and audit firms shall be subject to public oversight.
3. The system of public oversight shall be governed by non-practitioners who are knowledgeable in the areas relevant to statutory audit. Member States may, however, allow a minority of practitioners to be involved in the governance of the public oversight system. Persons involved in the governance of the public oversight system shall be selected in accordance with an independent and transparent nomination procedure.
4. The system of public oversight shall have the ultimate responsibility for the oversight of:
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(a) |
the approval and registration of statutory auditors and audit firms; |
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(b) |
the adoption of standards on professional ethics, internal quality control of audit firms and auditing, and |
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(c) |
continuing education, quality assurance and investigative and disciplinary systems. |
5. The system of public oversight shall have the right, where necessary, to conduct investigations in relation to statutory auditors and audit firms and the right to take appropriate action.
6. The system of public oversight shall be transparent. This shall include the publication of annual work programmes and activity reports.
7. The system of public oversight shall be adequately funded. The funding for the public oversight system shall be secure and free from any undue influence by statutory auditors or audit firms.