With a view to safeguarding the public interest and the trust of the stakeholders and investors in the financial information disclosed by companies, the Portuguese Institute of Certified Public Accountants warns of the consequences of passing the bill to transpose the Audit Directive.
Lisbon, June 16, 2015 – Having neither been asked to participate nor invited to the discussion on the bill to transpose the Audit Directive, which was approved in principle by the Assembly of the Republic, the Portuguese Institute of Certified Public Accountants (OROC) points to a loss of control—despite having long advocated for greater rigor, transparency, and accuracy in financial statements—as the main implication of its implementation, as it has come to public attention.
According to José Azevedo Rodrigues, President of the OROC, “Auditing did not come about as a result of legal requirements. It arose from the demands of users of financial information: shareholders, investors, and lenders. Auditing becomes mandated by law when governments recognize its contribution to the transparency of entities” financial information. This bill undermines the role of auditors in safeguarding the public interest.”.
Market concentration, the lack of independence of the Supervisor, the near-certain decline of small audit firms, and the profession’s inability to attract young people will be just a few of the twenty consequences outlined by OROC.
A more detailed explanation of OROC's position is available here.