On 1 September, 2007, the Swiss Federal Act on the Admission and Supervision of Auditors (ASA) came into force. The introduction of a governmental supervision of the auditors was in reaction to the various collapses of companies, accounting scandals and the regulatory changes implemented particularly in the US and the European Union.
The new law aims to guarantee a higher quality of auditing services and increase confidence in the auditing institutions and, to that end, abolished the principle of self-regulation previously applied in the auditing industry in Switzerland. The ASA provides for an admission procedure for all auditors and audit firms; only persons admitted by the newly established Audit Supervisory Authority are permitted to provide auditing services. The ASA further regulates the supervision of auditing firms.
