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Commission proposes tough auditing rules

Following recent major financial scandals with companies such as the Italian dairy giant Parmalat, the European Commission has proposed stricter EU-wide auditing rules.

Under a new directive proposed yesterday (March 16) by Internal Market Commissioner Frits Bolkestein, tough auditing quality standards would be introduced throughout the EU.

Under the proposed rules, it would be compulsory for audited companies to set up an independent audit committee which would select the audit...

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