EU to replace audit oversight body with CEAOB

The European Commission has disbanded the European Group of Auditors’ Oversight Bodies (EGAOB) and plans to replace it with a new pan-European oversight body, the Committee of European Auditing Oversight Bodies (CEAOB), to enforce the Audit Regulation and Directive (ARD)

Under the recently introduced Audit Regulation, the Commission has set up the CEAOB, which will act as the framework for cooperation between European national audit authorities. 

The ARD, which came into force on 17 June 2016 and is now enshrined in UK law, repealed the decision establishing the EGAOB (Commission Decision 2005/909/EC).

Members of the CEAOB include representatives of the national audit oversight bodies across the EU and of the European Securities and Markets Authority (ESMA), as well as representatives from  national audit authorities of the European Economic Area. The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) will attend as observers.

During its inaugural meeting on 12 July, the Committee appointed Ralf Bose, chief executive director of Germany's Auditor Oversight Body (AOB), as chair of the CEAOB for a four-year mandate by consensus.

Bose said: 'I am delighted and thankful to have been entrusted with the mandate of chair of the CEAOB. In the early days, I will focus my mandate on getting the CEAOB up and running, with the support and input of all the CEAOB members and observers and the European Commission.

‘These are exciting and challenging times for statutory audit in Europe as the new EU audit legislation takes effect.

‘I look forward to the CEAOB playing its full role in improving both audit quality and investor confidence in audits through effective communication'.

The Commission also appointed Erik Nooteboom as vice-chair of the CEAOB. He is acting director responsible for investment and company reporting in the directorate-general for financial stability, financial services and capital markets union (DG FISMA) will fulfil this role.

During its time, the EGAOB was responsible for coordination of public oversight systems of statutory auditors and audit firms across the EU. It was also involved in endorsement of the International Standards on Auditing (ISAs) and assessment of third countries' public oversight systems.

Further, it had ultimate responsibility for the oversight of the approval and registration of statutory auditors and audit firms, although this was cascaded down to individual member states.

As yet, there is no further information available at the composition or responsibilities of the oversight body, although the Commission states that ‘more information about the CEAOB will soon be available.

General enquiries should be sent to EC-CEAOB-SECRETARIAT@ec.europa.eu

The Committee of European Auditing Oversight Bodies (CEAOB) home page is available here

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