MEPs have reconvened and understood to be close to agreeing on a package of measures which would reform audit within the European Union.
This follows a last-minute cancellation of a trilogue meeting last week when MEPs failed to agree on issues around the reforms.
The framework for audit reform within the EU, which MEPs are discussing, is at this stage a preliminary agreement which is still subject to the final agreement by member states in the Committee of Permanent Representatives (Coreper) which meets later this week.
Among the main points which need agreement is the 20-year mandatory rotation proposal, which will compel change of external auditor after 20 years and the restrictions of non-audit services which would effectively put lucrative consulting work out of the reach of some of the biggest audit firms in the market.
Last week lead negotiator for the project, Sajjad Karim, was so frustrated by the lack of a solution that he cancelled the trilogue process, which are meetings which rely on the co-operation and agreement of members of the European Parliament, the Council and Commission, if legislative measures are to be passed effectively.
Proposals to make changes to the Audit Directive were initially presented to Commission in November 2011.
Michael Izza, ICAEW chief executive, said the debates on audit reform have been going on for three years.
'While we have been concerned about certain parts of the proposals, focus now needs to move to the transition and practical implications.
'It is important not to underestimate the considerable practical impact the reform package will have - not only on the auditing profession but also on companies across the European Union.
'It will take time for everybody involved - the profession, businesses, regulators - to work through the details and get to grips with all the changes,' said Izza.
Coreper spokesperson, Jurgita Germanavičienė, told Accountancy that details of the agreement will be released either Wednesday or Friday, following the meeting of member states this week.
