EU audit reform legislation: PwC

EU audit reform legislation – the facts

EU legislation to reform the statutory audit market was adopted in April 2014. The laws are expected to apply from mid June 2016 – with the exception of MFR, which is subject to transition arrangements.

We have summarised the key issues impacting the statutory audit included in the new EU audit reform legislation and, in particular, the requirements for public interest entities (PIEs). Specifically:

  • Mandatory audit firm rotation for PIEs
  • New requirements for audit committees (or their equivalent) relating to their oversight of the performance of the audit
  • Additional restrictions on the provision of non-audit services by the statutory auditor to their PIE audit clients
  • New requirements regarding reporting by the statutory auditor
EU audit reform – mandatory firm rotation EU audit reform – audit committees EU audit reform – prohibition of certain non-audit services EU audit reform – audit firm reporting EU audit reform - Public Interest Entities (PIEs)