Regulating Audit in Europe: The Case of the Implementation of the EU Eighth Directive in Denmark 1984-2006
Publikation/Tidskrift/Serie: European Accounting Review
Förlag: Taylor & Francis Group
This paper analyses the consequences, in Denmark between 1984 and 2006, of the implementation of the European EU Eighth Directive on the qualification of statutory auditors. Although the Eighth Directive envisaged one group of statutory auditors in each Member State, there were two groups of auditors in Denmark, and the implementation of the Directive triggered a long conflict between the two groups about the education of the second-tier auditors. The analysis is based on the work of Abbott ((1988)) on professional jurisdictional disputes and shows how the local implementation of the Eighth Directive on auditor qualifications disturbed the balance of the 'system of professions' in Denmark and gave rise to an intra-professional conflict over the statutory audit jurisdiction. The jurisdictional dispute dragged on for two decades because of the complexity of the Danish regulatory system, where audit regulation takes place in overlapping committees between the profession, the state and the educational institutions. It was finally settled by educational differentiation of the two groups, and we discuss the implications of this settlement for the process of audit harmonisation in Europe.
- Business and Economics
- ISSN: 0963-8180