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EU audit reforms

On 17 June 2016, new EU legislation on statutory audit came into force throughout 28 EU member states. This page brings together resources on the Statutory Audit Directive, key changes to auditor independence requirements in the UK and information on implementation across Europe.

ICAEW guidance and support

Implementation of European Audit reforms
Comprehensive information onchanges to auditor independence requirements resulting from the European audit Regulation and Directive issued in 2014, covering:

  • Background
  • Key changes
  • Public interest entities (PIEs)
  • Non-audit services fee limits for PIE audits
  • Non-audit services prohibitions for PIE audits
  • Rotation and tendering for PIE audits.

What is audit reform?
Summary of the background to audit reform, latest developments and links to consultations.

Practical resources
Resources to help you understand and implement audit reform changes with links to articles, Q&As, policy statements and guidelines, and relevant events.

External resources

Auditing of companies' financial statements
Summary from the European Commission, covering:

  • Role of audits and Commission goals
  • Audit reform in the EU
  • Cooperation between European national audit authorities
  • Market monitoring
  • Relations with third countries
  • Commission recommendations.

Reform of the EU Statutory Audit Market - Frequently Asked Questions (updated version)
European Commission, June 2016
Detailed FAQ giving details on the definitions, scope and implementation of new audit rules along with key changes to expect.

National implementing measures for Directive 2014/56/EU
EUR-Lex
Table regularly updated by EUR-Lex showing implementation of the audit directive by EU countries, with details of the measure enacted by each member state.

EU Audit Legislation Implementation Database
Site showing how EU member states and EEA countries have implemented Directive 2014/56/EU. Users can compare the following requirements by country:

  • Implementation Status
  • Compliance Level
  • Length of the initial engagement period
  • Maximum duration of the audit relationship
  • Partner Rotation
  • Expanded definition of a PIE
  • Expanded Auditors' Report
  • Expanded Report to the Audit Committee
  • Expanded Transparency Report
  • Prohibited non-audit services
  • White list of permissible non-audit services
  • Definition of “general counsel”
  • Provision of tax and valuation services
  • The cap on non-audit services.

Member states' implementation of new EU audit rules: State of play as of April 2018
Accountancy Europe, April 2018
Analysis of the directive's implementation status across Europe with commentary on potential outcomes regarding the provision of non-audit services, mandatory audit firm rotation and organising public oversight. Updated quarterly.

Standards, codes and regulations

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