FCM Comparative Study – November 2007

This comparative study provides a brief overlook of public oversight arrangements in 15 countries across the Mediterranean area, 8 of which are part of the European Union. It investigates which of these Mediterranean countries have implemented a Public Oversight System for statutory auditors and audit firms, and which countries will implement such a system in the near future. The survey provides a brief overview of public oversight arrangements and differences among the systems across the area.

This paper deals with two main issues: the details on the current and future implementation of the public oversight system. The first part includes information about the nomination procedure; the composition of the public oversight board; the responsibilities and scope of activities undertaken by the members of the board; the public oversight system’s type of funding; the rules about transparency. The second part addresses those countries which have not yet implemented the public oversight system and explains how it will work once the implementation takes place. Finally, the study provides the respondents’ views on the need for a public oversight system in each country.

The results of the study show that about half of the Mediterranean countries have a public oversight system in place. Only three states of the remaining part - Albania, Egypt and Morocco - are not planning to implement a public oversight system in the near future, while the remaining five are working at the implementation.