Following The ARD
New EU rules bring changes to audit in areas ranging from eligibility and governance criteria to standards for auditing and ethics.
Most auditors are probably well aware that the main topics of the new EU audit rules are prohibitions around the provision of non-audit services, mandatory audit firm rotation, changes to public oversight and around the delegation of related tasks to recognised supervisory bodies such as ICAEW. However, as most auditors are also probably well aware, as with many things, the devil may be in the detail.
Legislative changes resulting from the UK implementation of the EU Audit
Regulation and Directive (ARD) have been made largely though amendments to the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations (known as SATCAR). Under the powers the government has delegated to the Financial Reporting Council (FRC), it has made four legal instruments including the Statutory Auditors (Registration) Instrument 2016.
This is an extract from an article in the September 2016 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.
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