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European Union - 8th
Company Law Directive
DIRECTIVE
2006/43/EC
Article 42
Independence
1. In addition to the provisions laid down in Articles 22 and
24, Member States shall ensure that statutory auditors or audit
firms that carry out the statutory audit of a public-interest
entity:
(a) confirm annually in writing to the audit committee their
independence from the audited public-interest entity;
(b) disclose annually to the audit committee
any additional
services provided
to the audited entity; and
(c)
discuss with the audit committee the threats to their
independence
and the
safeguards applied to mitigate those
threats as documented by them pursuant to Article 22(3).
2. Member States shall ensure that the key audit partner(s)
responsible for carrying out a statutory audit
rotate(s)
from the
audit engagement
within a maximum period of seven years
from the date of appointment and is/are allowed to participate
in the audit of the audited entity
again after a period of at
least
two years.
3. The statutory auditor or the key audit partner who carries
out a statutory audit on behalf of an audit firm
shall not be
allowed to take up a key management position in the audited
entity before a period of at least two years
has elapsed since he
or she resigned as a statutory auditor or key audit partner from
the audit engagement.
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