• Register
Return to: Home > News > 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

    Illicit financial flows: the Crippling of african economies and the accountants’ guilt

    At the Africa Congress of Accountants (ACOA 2017) held in Uganda in May, a panel of experts looked at the impact of illicit financial flows on African economies and the role of the accountant in combating such transactions. The panellists’ presentations were followed by a Q&A session with the audience. highlights of the Q&A are published below. Compiled by Vincent Huck

    read more

    In the land of a thousand hills: a long hike uphill – but rwanda is determined to build the profession

    Amin Miramago was appointed CEO of the Institute of Certified Public Accountants Rwanda in March this year. While attending the Africa Congress of Accountants in May he spoke to Vincent Huck about iCPAR’s strategic plan and how the institute aims to contribute to the Rwandan government’s objective to make the country the financial hub of the region.

    read more

    Cayman islands: in search of tax legitimacy

    Cayman Finance CEO Jude Scott defends the Cayman Islands’ track record in tax transparency and the quality of its financial services. Interview by Vincent Huck

    read more

    Comment: Greek Steps Forward

    By Ian Ball, chairman, CIPFA International

    read more

    The next generation’s take on a profession desperate to attract talent

    To celebrate international youth day, The Accountant asks professionals aged under 35 to share their thoughts on the profession: why they qualify as accountants, whether it was challenging and, now that they are in, how they see the profession and where it is going.

    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.