The reliability of financial information is an indispensable pre-requisite for the functional efficiency of capital markets. All market participants, especially institutional or private investors must be able to rely on information and are entitled to be able to satisfy themselves as to the integrity of all those playing an important part in these markets. To a particular degree trustworthiness and integrity must be required of auditors who as annual auditors or experts give an appraisal of the correctness and completeness of financial information.
The transparency report in accordance with Art. 55c of the German Public Accountants’ Code (Wirtschaftsprüferordnung) is stipulated by European law. Capital market participants are hence to be able to gain a picture of those who give an independent assessment of statements of accounts of security issuers. Annual auditors of companies, the transferrable securities of which are admitted to dealings on a regulated market of a member state of the European Communities, are obliged to publish.
The quality assurance system to be described in the transparency report is, nevertheless, not only to be applied in the case of annual audits of listed companies, but to all annual audits at companies from a certain order of magnitude (statutory mandatory audits). We therefore also use the report in order to make our understanding of performance and quality transparent for a wider interested public.