The original resolution was enacted to effectuate Art. 318 of the Law of Companies’ mandate for external auditing of certain companies. Official Resolution No. 01Q.ICI.014 (published October 11, 2001 in Official Register No. 430) refines the permitted external auditing company activities. Specifically, this new resolution was issued to prohibit the practice of external auditing companies simultaneously providing legal services to the same client. This practice, long restricted in the United States, created a potential conflict of interest that could cast doubt on the independence of external companies’ auditing reports of their own clients.
Official Resolution No. 01Q.ICI.014 is a product of the Ecuadorian government’s continued efforts to impart greater transparency into all commercial and governmental activities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.