Deutsche Prüfstelle für Rechnungslegung –German Accounting Review Board
Enforcement
A privately organised review board (Deutsche Prüfstelle für Rechnungslegung –
German Accounting Review Board) has been set up under the Financial
Statements Review Act.
This board is subject to the overall control of the
Federal Financial Supervisory Authority. It conducts field reviews of the
published financial statements and other reports of quoted companies.
It
selects its review candidates at random, in reaction to specific suspicions of
irregularities, or at the explicit request of the Supervisory Authority. Publication
of its findings is the primary sanction on a company found to have
misrepresented its position without being criminal. Companies must cooperate
with the board.
Failure to do so is reported by the board to the Authority, which
may then decide to conduct its own investigation – possibly acting through the
board’s staff.
EU Forecast
euf:ba18e:117/nws-01