27 May 2014
EU legislation to reform the statutory audit market was adopted in April 2014. The laws will apply from mid-June 2016 – with the exception of mandatory firm rotation, which is subject to transition arrangements.
The legislation – composed of a directive and a regulation - means that mandatory rotation of statutory audit firms will be introduced into the EU on a 10 yearly basis for all public interest entities. There will also be additional restrictions on the non-audit services that audit firms can provide to their audit clients.
Click on the links below to read the fact sheets on:
The regulation contains as many as 21 Member State options, which may lead to a patchwork of rules across the EU – both in the periods for rotation and which services are prohibited.
Stakeholders are being encouraged to engage with their respective governments to input on the best possible use of the Member State options.