European ACLN - ViewPoints - The future of the audit committee in Europe - 17 May 2005

EUROPEAN AUDIT COMMITTEE LEADERSHIP NETWORK ViewPoints 17 May 2005 TAPESTRY NETWORKS, INC · WWW.TAPESTRYNETWORKS.COM · +1 781-290-2270The future of the audit committee in Europe Introduction The European Audit Committee Leadership Network is a select group of audit committee chairs from leading European companies committed to improving the performance of audit committees and enhancing trust in financial markets. The network is convened by Ernst & Young and orchestrated by Tapestry Networks to access emerging best practices and share insights into issues that dominate the new audit environment. The European Audit Committee Leadership Network held its second meeting in Paris on 15 April 2005. Members explored the challenges audit committee chairs face as they consider diverse national laws, regulations and pending European Union (EU) legislation including the 8th Directive on Statutory Audit. During the discussion, members considered the following questions: • What role does the audit committee play in public companies across Europe? • What likely impact will EU directives have on the audit committee? • What are the implications for relationships with the internal and external auditors? Network members also identified other related issues they are currently dealing with, including: • IFRS comparability across countries and industries and convergence with US GAAP • (For SEC registrants) Implementation of Sarbanes-Oxley Section 404 including the ...