Guidebook to the EAR
Our guidebook explores the baseline measures of the EAR and offers relevant insight into how to respond to the changes.
Introducing mandatory rotation and encouraging joint audit
InsightsLatest news and eventsThe EU Audit ReformAbout the reformThe primary measures introduced by the EAR
Mandatory rotation of audit firms and joint audit
The EAR both introduces mandatory rotation requirements for the Statutory Auditor of PIEs and promotes the practice of joint audit.
Mandatory audit firm rotation is one of the most significant areas of change introduced by the EU audit legislation. Statutory Auditor of PIEs must rotate after a maximum initial engagement period of 10 years. Member States have the option to allow PIEs to extend their auditor’s engagement to 20 years, in a situation in which an open and competitive tender takes place, or to 24 years under a joint audit arrangement.
For more information on mandatory rotation requirements and joint audit as a possible alternative, please consult our factsheets and videos.
Testimonies
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.