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Compulsory Firm Rotation and the Banning of Non-Audit Service. Essay

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Below is an essay on "Compulsory Firm Rotation and the Banning of Non-Audit Service." from Anti Essays, your source for research papers, essays, and term paper examples.

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|THE NEW EUROPEAN AUDIT PROPOSAL                                                         |
|Compulsory firm rotation and the banning of non-audit service.                         |
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|Oseremen Okpebholo                                                                     |
|11/9/2012                                                                               |
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Introduction

  On 30 November, Michel Barnier the internal market commissioner a member of the European Commission revealed his new audit reform proposal; this proposal includes compulsory rotation, joint audit and the banning of Non- audit services. The reform is due to be in action by 2013. In this essay I am going write the different views of what people have said about the new reform, I will then be giving my opinion on the proposal too. An audit is to the process of checking a company's financial statement and giving an honest opinion about the company's financial status, and whether it free from material errors.
Below is a summary of the proposals:
To have a compulsory firm rotation every 6 years
Companies can decide to have joint audits in which they we have to rotate after nine   years instead of six years.
Putting a 10% fee on the provision of financial audits services to clients.
And a stoppage on the rending of non-audit services by audit firms.

  When a business is failing the auditors are often called to answer questions about the quality of the company's audit, when the auditors are unable to answer the questions then...

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Citations

MLA Citation

"Compulsory Firm Rotation and the Banning of Non-Audit Service.". Anti Essays. 10 Dec. 2018

<http://snehaedu.com/free-essays/Compulsory-Firm-Rotation-And-The-Banning-357001.html>

APA Citation

Compulsory Firm Rotation and the Banning of Non-Audit Service.. Anti Essays. Retrieved December 10, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Compulsory-Firm-Rotation-And-The-Banning-357001.html