2005/909/EC: Commission Decision of  14 December 2005  setting up a group of experts to advise the Commission and to facilitate cooperation between public oversight systems for statutory auditors and audit firms
Date: 2005-12-14
Institutions: European Commission
Subjects: administrative cooperation, audit, auditing, consolidated account, management audit, operation of the Institutions, self-employed person

L 329/38

EN

Official Journal of the European Union

16.12.2005

COMMISSION DECISION

of 14 December 2005

setting up a group of experts to advise the Commission and to facilitate cooperation between public
oversight systems for statutory auditors and audit firms

(2005/909/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

HAS DECIDED AS FOLLOWS:

Having regard to the Treaty
Community,

establishing the European

Whereas:

(1)

(2)

(3)

and

Council

accounts

Directives

consolidated

accounts
78/660/EEC

Reinforcement of the statutory audit is essential in order
to restore investors’ confidence in the financial markets.
The modernised Eighth Directive on statutory audit of
and
annual
amending
and
83/349/EEC (1)
(hereinafter referred to as modernised
Eighth Directive) introduces, inter alia, a requirement for
Member States to set up a system of public oversight for
statutory auditors and audit
firms. The modernised
Eighth Directive aims also to establish co-ordination of
the community level and
public oversight systems at
includes a possibility for the Commission to adopt imple-
menting measures.

In order to reach the goals outlined in the modernised
Eighth Directive, the Commission needs to call upon an
expert group which would contribute to the co-ordi-
nation and the development of public oversight
systems within the European Union. The group could
also contribute to the technical preparation of the imple-
menting measures of the modernised Eighth Directive.

The expert group should be composed of high level
representatives drawn from the public oversight systems
for statutory auditors and audit firms in Member States.
If such systems are not yet established, representatives
from the national ministries responsible for their estab-
lishment in the future should join the group. Only non-
practitioners, as defined under Article 2(11)(b) of the
modernised Eighth Directive, can be designated as repre-
sentatives or alternate representatives because of
the
potential conflicts of
interest between the profession
and the private sector on one side, and the public
the work of
interest on the other side. Nevertheless,
the Commission and of the group should draw upon
the knowledge and experience of practitioners. As a
result,
the Commission should, after discussion with
the expert group, consult extensively and at an early
stage with market participants, consumers,
the audit
profession and end-users in an open and transparent
manner, on the work of the group.

(4)

The expert group called the ‘European Group of Auditors’
Oversight Bodies’
therefore should be set up and its
terms of reference and structures detailed,

(1) Not yet published in the Official Journal.

Article 1

The expert group called the ‘European Group of Auditors’
Oversight Bodies’ hereinafter
is
hereby set up by the Commission.

referred to as

‘the group’

Article 2

Task

The Commission may consult
the group on any question
relating to the preparation of the implementing measures of
the modernised Eighth Directive. The group may also discuss
any matter relating to cooperation between public oversight
systems for statutory auditors and audit firms.

The group’s tasks are mainly to:

— facilitate cooperation between public oversight systems of
Member States and to bring about an exchange of good
practice concerning the establishment and ongoing coop-
eration of such systems;

— contribute to the technical assessment of public oversight
systems of third countries and to the international coop-
eration between Member States and third countries in this
area;

— contribute to the technical examination of

including

the processes

international
their
the

for

adoption at

standards,

auditing
elaboration, with a
community level.

view to their

Article 3

Composition — Appointment

The group shall be composed of high level representatives
1.
the public oversight of
from the entities
statutory auditors and audit
firms in Member States or in
their absence, of representatives from the competent national
ministries.

responsible for

2.
Each Member State shall designate a high level represen-
tative from one of the authorities mentioned in paragraph 1 to
participate in the meetings of the group. The Commission can
refuse the representative designated by a Member State when it
does not consider the representative appropriate, particularly if
there is any conflict of interest. In such a case, the Commission
will quickly inform the Member State concerned which can then
designate another representative.

16.12.2005

EN

Official Journal of the European Union

L 329/39

Only non-practitioners can be designated as represen-

3.
tatives.

4.
Each Member State shall designate one representative. One
alternate representative per Member State may be designated
under the conditions set up in paragraphs 1, 2, 3 and 5.

5.

The following provisions shall apply:

— in a case where a Member State is represented by a ministry,
when a public oversight system for auditors and audit firms
is established, the Member State shall replace its represen-
tative by a representative drawn from the public oversight
system;

— representatives who are no longer able to contribute effec-
tively to the group’s deliberations, who resign or who do
not respect the conditions set out in the first or third point
of this Article or Article 287 of the Treaty establishing the
European Community, shall be replaced;

The chairman may ask experts or observers with specific
4.
competence on a subject on the agenda to participate in the
group’s or sub-group’s deliberations if
this is useful and/or
necessary.

5.

The group’s discussions shall not be public.

The group and its

6.
sub-groups normally meet on
Commission premises in accordance with the procedures and
schedule established by it. The Commission provides secretarial
services. Other Commission officials with an interest in the
proceedings may attend these meetings.

The group shall adopt its rules of procedure on the basis
7.
of the standard rules of procedure adopted by the Commission.

8.
The Commission may publish, in the original language of
the document concerned, any résumé, conclusion, or partial
conclusion or working document of the group.

Article 5

Meeting expenses

— members of sub-groups mentioned in Article 4 below and
being practitioners, shall sign at
their
mandate and, each time it is required by the chairman, an
undertaking to act in the public interest and a declaration
indicating the absence or existence of any interest which
may undermine their objectivity.

the beginning of

The Commission shall reimburse travel and, where appropriate,
subsistence expenses for representatives, members of the sub-
groups, experts and observers in connection with the group’s
the
activities in accordance with the provisions in force at
Commission. The representatives shall not be paid for their
duties.

Article 4

Operation

Meeting expenses are reimbursed within the limits of the appro-
priations allocated to the department concerned under the
annual procedure for allocating resources.

1.

The group is chaired by the Commission.

2.
the
As general rule, after discussion with the group,
Commission should consult extensively and at an early stage
with market participants, consumers, the audit profession and
end-users in an open and transparent manner, on the work of
the group.

3.
In agreement with the Commission, sub-groups may be
set up to examine specific questions under terms of reference
established by the group; they shall be disbanded as soon as
these have been fulfilled. The sub-groups can also include prac-
titioners.

Article 6

Entry into force

The decision shall take effect on the day of its publication in the
Official Journal of the European Union.

Done at Brussels, 14 December 2005.

For the Commission

Charlie McCREEVY
Member of the Commission