EU Audit Reform Makes Global Waves.
On April 3, 2014, members of the European Parliament voted in favour of EU audit reforms aimed at regulating the audit profession. This ruling will likely see final legislation come into effect by mid-2016.
While these new rules apply to organizations that are public interest entities (PIEs) in Europe, Canadian companies will need to know to what extent the rules affect them. More specifically, they want a better understanding of the requirements for mandatory firm rotation, which non-audit services will be prohibited and how quickly Canadian companies will need to comply.
Although these regulations apply within EU member states, they may affect companies and their auditors in other jurisdictions as well. That said, neither Canada nor the United States have embraced mandatory firm rotation—their response to audit reform has been to focus on enhancing audit quality.
The following materials were developed to provide you with an overview of the legislation and the Canadian implications