Legislation ensuring oversight for Bermuda’s public accountants is in line with European requirements passed through the House of Assembly yesterday.The Bermuda Public Accountability Act makes those who audit the Island’s Public Interest Entities (PIEs) abide by the demands imposed on auditors in the European Union.Premier and Finance Minister Paula Cox said the bill focuses on ensuring quality assurance and investigation work and penalties for those who fall short.Ms Cox told the House the bill will require Bermuda’s system to be free from possible undue influence by audit firms and auditors must have the appropriate education, experience and training.Other requirements include:l reviewers must not have conflicts of interest with the reviewed party;l quality assurance reviews take place at least every six years;l overall results of the quality assurance system are published annually;l recommendations of quality reviews are followed up by the audit firm within a reasonable period;l an effective system of investigations and penalties to detect, correct and prevent inadequate execution of audits;l effective, proportionate and dissuasive penalties for auditors that do not carry out audits properly;l penalties imposed on failing auditors to be made public.The Premier said the bill affects those who conduct audits on PIEs: companies that have their securities traded on regulated markets in the European Union.She said it has been put together in close cooperation with the affected audit firms which are in the Institute of Chartered Accountants of Bermuda.“The process has been both collaborative and productive, resulting in a framework that reflects high standards and best international practice for the supervision of audit firms, while being appropriate for the nature of the Bermuda market and the ultimate protection of investors,” said Ms Cox.One Bermuda Alliance MP Patricia Gordon-Pamplin, who works in finance, spoke briefly to offer the Opposition’s support of the bill.