15 • 18
Country
Required to Be Audited
Election of Auditor
Objective or Purpose of Audit
Sources of Auditing Standards
Europe (Continued)United Kingdom
All limited companies above
Appointed/reappointed annu-
An independent examination
The Auditing Practices Board
a specified size limit. Small
ally by shareholders’ majority
and opinion, for sharehold-
(APB) established in 1991 by
companies may request
vote at annual general meet-
ers, on whether the financial
the Consultative Committee
audit; separate requirements
ing; in exceptional circum-
statements give a true and
of Accountancy Bodies
exist for charities; other bod-
stances casual vacancies may
fair view of the state of the
(CCAB) comprising the six
ies/interested parties may
be appointed by Secretary of
company’s affairs as at the
principal accountancy bodies
request “audit” service for a
State for Trade and Industry
balance sheet date and of the
in the United Kingdom and
wide range of enterprises
profit and loss for the year
Republic of Ireland
then ended and have beenproperly prepared in accor-dance with the CompaniesAct 1985.
Italy
In Italy there are two bodies
Proposed by the board of
To ensure that the financial
Auditing standards are issued
charged with auditing: The
directors and elected by the
statements taken as a whole
by the Dottori Commercialisti
Board of Statutory Auditors
general
meeting
of share-
give a true and fair view of
and the Ragionieri
(Collegio Sindacale)
and the
holders
the financial position and
Collegialisti; and approved
Auditing Firm. The first is
result in compliance with
by the National Association
composed of three to five
the civil code.
of Auditors’ Firms (ASSIREVI)
members and it is compul-
and by CONSOB.
Similar to
sory for all companies in the
International Standards on
legal form of Stock Company
auditing.
and for Limited LiabilityCompanies that have a capi-tal above 200 million lira.However, a board is requiredalso if, in two consecutivefinancial years, the companyexceeds two of the followinglimits: a) assets—4.70 millionlira b) earnings from salesand provisions of services—9.500 million lira; average