Brussels cracks down on audit directive laggards

The European Commission is taking Italy to the European Court of Justice for failing to implement the 2006 European Union (EU) statutory audit directive – approved following the country’s notorious Parmalat scandal (see ‘Sour milk’, Fraud Intelligence Feb/Mar 2004). Its implementation deadline was June 2008; its aim – boosting European audit quality. Notably, the directive requires member states to establish external quality assurance and public oversight systems, encouraging cooperation between financial regulators. Austria, Ireland and Spain are also being taken to the court over non-implementation of the law.