(18) The public oversight of statutory auditors and audit firms encompasses the approval and registration of statutory auditors and audit firms, the adoption of standards in respect of professional ethics and internal quality control of audit firms, continuing education, and the systems of quality assurance, investigation and sanctions for statutory auditors and audit firms.

19. Notes Commission Recommendation 2008/473/EC of 5 June 2008 concerning the limitation of the civil liability of statutory auditors and audit firms , which calls on Member States to limit the liability of accountants, with due regard for their own national legislation and circumstances; further notes the recommendation's objective of bolstering the level playing-field for undertakings and accountancy firms through greater convergence between Member States in this area; underlines that the objective of limiting the liability of auditors and audit firms proposed by the Commission recommendation must not violate the legal principles governing civil liability in certain Member States, such as the principle of the right to compensation for v ...[+++]ictims; underlines that, within the context of the current economic and financial crisis, the recommendation should not call into question the quality of the statutory audit or the confidence placed in the function of statutory audits; calls on the Commission to inform Parliament no later than in 2010 about the impact of, and the follow-up to, the recommendation, the important issue in this connection being, in particular, whether and to what extent, in accordance with the Directive's objective, the recommendation is leading to greater convergence between Member States; emphasises that, in the event that further measures prove necessary, the Commission must undertake an impact study assessing the possible effects of limitation of civil liability of auditors and audit firms on the quality of audits, financial security and the concentration on the audit market;

19. Notes Commission Recommendation 2008/473/EC of 5 June 2008 concerning the limitation of the civil liability of statutory auditors and audit firms, which calls on Member States to limit the liability of accountants, with due regard for their own national legislation and circumstances; further notes the recommendation's objective of bolstering the level-playing field for undertakings and accountancy firms through greater convergence between Member States in this area; underlines that the objective of limiting the liability of auditors and audit firms proposed by the Commission recommendation must not violate the legal principles governing civil liability in certain Member States, such as the principle of the right to compensation for vi ...[+++]ctims; underlines that, within the context of the current economic and financial crisis, the recommendation should not call into question the quality of the statutory audit or the confidence placed in the function of statutory audits; calls on the Commission to inform Parliament no later than in 2010 about the impact of, and the follow-up to, the recommendation, the important issue in this connection being, in particular, whether and to what extent, in accordance with the Directive’s objective, the recommendation is leading to greater convergence between Member States; emphasises that, in the event that further measures prove necessary, the Commission must undertake an impact study assessing the possible effects of limitation of civil liability of auditors and audit firms on the quality of audits, financial security and the concentration on the audit market;

(d)a statutory auditor or an audit firm shall establish appropriate policies and procedures to ensure that outsourcing of important audit functions is not undertaken in such a way as to impair the quality of the statutory auditor's or the audit firm's internal quality control and the ability of the competent authorities to supervise the statutory auditor's or the audit firm's compliance with the obligations laid down in this Directive and, where applicable, in Regulation (EU) No 537/2014.

A Member State may exempt a registered third-country auditor or audit entity from being subject to its quality assurance system if another Member State's or third country's system of quality assurance that has been assessed as equivalent in accordance with Article 46 has carried out a quality review of the third-country auditor or audit entity concerned during the previous three years.

It contains, among other things, rules on the requirement for external quality assurance (e.g this quality assurance must be independent of the reviewed statutory auditors and audit firms and subject to public oversight), the use of international standards, duties of the statutory auditors and principles regarding auditors’ independence.