EU has recently announced proposals to limit the engagement period of statutory auditors

The EU has recently announced proposals to limit the engagement period of statutory auditors €“ see http://europa.eu/rapid/press-release_MEMO-13-1171_en.htm?locale=en €“ there is a copy on the KLE.

Required
Review these proposals and consider what issues they are attempting to deal with and what potential problems implementation of these proposals might bring. Set out arguments from the point of view of companies, shareholders and audit firms.
In formulating a response, be sure to consider current FRC guidance/standards on this issue and provide real world examples to amplify your discussion.