The European Commission has today asked Cyprus to respect EU rules on auditing. Under these rules, Member States should have set up a public oversight system for statutory auditors and audit firms under national law. As Cyprus has failed to do so, the Commission has sent Cyprus a reasoned opinion, the second step in the infringement procedure. If the Cypriot authorities fail to take satisfactory measures to remedy the infringement of EU law within two months, the Commission may decide to refer the case to the EU Court of Justice.