The implementation of the EU audit reform across EU member states has seen relative progress over the last quarter according to Accountancy Europe’s updates released in March and June of this year.
According to Accountancy Europe, of the seven countries that had not completed the implementation of EU audit reforms in March, namely, Iceland, Norway, Estonia, Poland, Romania, Cyprus and Croatia, only three countries (Poland, Cyprus and Estonia) have made progress.
Asked what are the challenges which delay implementation in those four countries, Accountancy Europe manager Tiago Mateus said that Iceland and Norway are still on time as they are not part of the EU but part of the European Economic Area (EEA). And as such they have a bit more time to implement all EU laws.
Regarding Croatia and Romania, Mateus said that they are late and the EU Commission (EC) has officially started infringement procedures with the Court of Justice for Croatia, although it has not yet started similar procedures against Romania.
Regarding the provision of non-audit services (NAS) to audit clients, only one member state (Portugal) has lowered the NAS cap below 70% according to the June update.
The updates can be accessed here.