Shortly after the U.S. passed the Sabaranes-Oxley statue the French business community commissioned a study to see what was necessary in France to strengthen financial reporting, internal controls and corporate governance. Societe Generale's very own Daniel Bouton was chosen to chair the commissioned committee. This is very ironic indeed as he deemed all this unnecessary and overkill. He would regret it later on. A lengthy report nicknamed the Bouton report came out of this study. There was a list of proposals that were in the report that was adopted in French Parliament as of 2003 when France modified the countries federal securities laws that as a whole are called French Commercial Code ( Code de Commerce). The following information is a few summarizations I found in my research which states the following developments:
Be approved in any member state. This change is designed to enhance compatibility with internal market rules and allow for more fully integrated audit firms.
Adhere to continuous education requirements. Statutory auditors should have knowledge of specific legislation of member states--company, fiscal, and social security law--as well as international accounting and audit standards.
Show evidence of approval through registration in a public electronic register. Registration will enable interested parties to ascertain whether a statutory audit firm (or auditor) has been approved, its location, and how it is organized.
Be subject to effective public oversight. For public interest entities, oversight of auditors should be carried out exclusively by non-practitioners who are knowledgeable about accounting and auditing
Be subject to robust professional ethics. The auditors and firms will be subject to the code of ethics adopted by the Ethics Committee of the International Federation of Accountants.
Be independent from the audited entity. Auditors or audit firms must not be involved in management decisions of the audited entity and must not accept any non-audit engagement that would compromise their independence. Auditors must document all significant threats to their independence.
Adhere to the IAASB'S International Standards on Auditing. States may only impose additional audit procedures if they follow from specific requirements related to the audit's scope.