Guidebook to the EAR
Our guidebook explores the baseline measures of the EAR and offers relevant insight into how to respond to the changes.
Promoting accountability and transparency through additional reporting
The EAR seeks to reinforce confidence in the audit process by introducing enhanced reporting requirements for audit reports.
Essentially, auditors are required to provide both more detailed audit reports to shareholders and a specific report to the audit committee before issuing the audit report.In the case of PIEs, audit reports must include a description of the most important risks of material misstatement, including those due to fraud. In addition, the auditor must formulate his or her response to that risk.
For all other audits in the EU, audit reports must include a statement on material uncertainties relating to events or activities that may cast considerable doubt on the entity’s ability to continue as a going concern.
In addition, audit firms auditing PIEs must publish a transparency report.
For more information, please refer to our Factsheet below.
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.