Tighter regulations prompt upsurge in audit market

The local auditing market saw a resurgence last year, thanks to its adherence to ever more stringent international auditing regulations, financial professionals say.

Among new regulations, experts highlight the U.S. Sarbanes-Oxley law and the International Financial Reporting Standards (IFRS), which are widely regarded as the European accounting standard, as having a stimulating effect on the market.

“Sarbanes-Oxley, which was passed by the U.S. legislature after the bankruptcy of Enron Corp., and which laid down much more stringent accounting rules for companies traded on American stock exchanges, resulted in a major upswing in the U.S. audit market,” Zoltán Ge­rendy, managing director of BDO Kontroll Auditing and Tax Consulting Kft, told the BBJ. “This, in turn, is resulting in a lot of new tasks and increased responsibility for auditors.”

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