Regulation of statutory audit in the European Union

Abstract

The article deals with the regulatory policy of statutory audit with the purpose of confidence strengthening in the European financial markets and ensuring the foundations of international cooperation of market regulators under the conditions of information economy functioning. General requirements for the EU not only define the target strategy of an auditor and the method of auditing – they direct the establishment of the structures necessary for ensuring audit quality and rise of confidence in audit functions. The attention is drawn to information transparency, which is the result of systematization of financial information made public by European companies. The authors have investigated a number of legislative acts of the European Union in audit and Sarbanes-Oxley Act of investor protection, as important elements in the formation of a real global convergence in corporate legislation sphere and contribution to the creation of a single market. Harmonization of audit activity is a step in the right direction in the area of corporate governance and protection of potential investors’ interests of the European market.