EU Audit Reform

EU Audit Reform

The EU audit legislation brings significant change for businesses and their professional service providers

The EU audit legislation brings significant change for businesses and their...

The EU audit legislation brings significant change for businesses and their professional service providers, and will impact all EU public interest entities, regardless of where in the world they may be headquartered. With the new rules set to come into effect in EU Member States from 17 June 2016, it is important that companies gain a firm understanding of what the changes might mean for them.

The new rules brought about by the EU audit legislation cover several areas, from mandatory audit firm rotation to restrictions on the additional services that can be provided to a business by their statutory audit firm. A number of Member States already enforce auditor rotation and all EU Member States are permitted to go beyond the EU rules to introduce tighter measures if they wish. This means that the final audit environment is unlikely to be consistent, with potential for a complex patchwork of audit legislation that would need to be traversed by companies operating in the EU.

There is a range of reference materials on the legislation available from this page - from broad overviews to detailed factsheets. They explore the potential impacts of the new rules and offer relevant considerations for businesses. 

All documents apply to the EU baseline rules. The final regulatory environment will be impacted by how each EU Member State interprets the legislation and any derogations they choose to implement.

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Redefining professional services

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We spotlight the main elements of the legislation and relevant considerations for businesses.

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 FACT SHEET 1: MANDATORY FIRM ROTATION AND TRANSITION ARRANGEMENTS

Mandatory Firm Rotation

Mandatory Firm Rotation for Public Interest Entities and Transition Arrangements

 
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FACT SHEET 2: RESTRICTIONS ON NON-AUDIT SERVICES

Restrictions on Non-Audit Services

Fact sheet 2: Restrictions on Non-Audit Services

 
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fact sheet 3 expanded audit committee

Expanded Audit Committee Responsibilities

Fact sheet 3: Expanded Audit Committee Responsibilities

 
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FACT SHEET 4: EXPANDED AUDITOR REPORTING

Expanded Auditor Reporting Requirements

Fact sheet 4: Expanded Auditor Reporting Requirements

 
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FACT SHEET 5: THE IMPACT BEYOND EUROPE

The Impact Beyond Europe

Fact sheet 5: The Impact of the EU Audit Legislation Beyond the EU

 
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