Legal audit of the companies accounts new norms
11/3/2010

A legislative decree has been recently approved, putting into effect EC Directive 2006/43/EC dated May 17, 2006, on the legal audit of the companies’ annual accounts.

The decree introduces modifications to the existing national legislation, by merging certain norms and abrogating or coordinating others contained in various law texts.

Listed below are the main modifications:

-         auditor is subject to regular training;

-     audits must carried out according to international auditing principles;

-         auditor is subject to quality checking at least every six years;

-         auditor can resign from his office, upon damage compensation;

-         in Limited liability companies (“Srl”), the board of statutory auditors becomes compulsory also if the company has to prepare consolidated accounts or if the company controls another company which is bound to legal audit;

-         specific rules are contemplated for audits of public entities.

The effective application of the new rules depends on the release of a sery of regulations and agreements from various bodies (Ministry of Economics, Ministry of Justice, Consob and professional bodies).