• Register
Return to: Home > News > Regulation > Patchy implementations of EU audit reform

Patchy implementations of EU audit reform

An overview of the implementation of the European Union audit reform, which came into force last June, shows consistency among member states in implementing the core rules, yet the options offered in the reform have led to a patchwork of different rules across Europe.

Accountancy Europe released the overview of the implementation of EU audit rules nine months after the deadline. The March State of Play has revealed the updates on the process in 31 European countries (including 28 EU member states).

The report also includes the potential outcomes of providing non-audit services, mandatory audit firm rotation, and organising public oversight following the decisions being made by member states.

Regarding mandatory audit firm rotation there was consistency in having the engagement period set at 10 years however there were deviations on the option to allow extensions. There were 4 different engagement periods across 18 member states for audit tendering.

For non-audit services (NAS) the majority of member states opted for derogation of prohibition of certain tax and valuation services. This was under the conditions that the impact on audited financial statements is little or none, that the evaluation of the impact on financial statements is documented in the additional report to the audit committee and that the principles of independence are applied by the statutory auditor. Only two member states opted to lower the NAS cap below 70%; Poland and Portugal.

The EU Audit Legislation implementation website can be found here showing how each country has implemented the audit rules.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.