The EU Audit Reform: setting the foundation of a competitive European audit market

InsightsLatest news and eventsThe EU Audit Reform

About the reform

Our goal is to shed some light on the EU Audit Reform (EAR) by providing you with a thorough understanding of its objectives and the major changes it introduces to the audit market. In this regard, we seek to accompany you during the transitional period and provide you with the necessary support to prepare— in an informed and timely manner— for this new market environment. We will keep you updated on Member State implementation laws as they are being adopted.

What motivated the EU to adopt such a reform?

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The EAR was launched following the 2008 global financial crisis. Though banks, rating agencies and hedge funds were the primary suspects, the European Commission (EC) also raised the issue of the role of auditors and their failure to detect the necessary warning signs leading up to the crisis. We invite you to learn more about why the EC adopted this reform in 2014 and what this means for the European audit market.

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What are the main measures introduced by the EAR?

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The EAR introduces some noteworthy changes in the European audit market, that have an effect on businesses all over Europe, particularly Public Interest Entities (PIEs). One of the most important changes is the mandatory rotation requirement for auditors of PIEs. We invite you to learn more about these changes and assess how they affect your organization.

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How are Member States adopting the EAR?

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The regulatory environment for businesses across Europe is largely affected by individual Member State legislations. As the EU Audit Reform (EAR) contains several options for EU Member States that extend beyond the EU baseline measures, rules can vary from one Member State to the next. Our aim is to provide you with a detailed overview of how local legislation is being adopted.

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How will the transitional period be organized?

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The EAR is effective since 17 June 2016.
To gradually introduce the new measures, the EU has devised a transitional regime for ongoing audits that are entering the new regulatory environment.

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Further insights

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What you need to know about joint audit

The recognition given to joint audit within the new regulation reinforces the idea that the system is a proven and valued option. As an expert on joint audit, we invite you to learn more about its concept, its methods and its associated benefits.

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