EU audit supervision reform: a well-designed approach needed to support capital markets

Commissioner Albuquerque’s announcement today of the European Commission’s intention to launch a consultation that could lead to measures to further converge audit supervision, marks an important moment for Europe’s audit market.

Audit is central to trust in corporate reporting and a cornerstone of Europe’s capital markets. Any change to its supervision must therefore be approached with great care. The Commission’s initiative is a significant signal, but it also raises important questions that must be thoroughly addressed in any reform efforts.

Start with the desired objectives

Accountancy Europe strongly supports the Commission’s efforts to develop a European Savings and Investments Union (SIU). We welcome initiatives that strengthen EU capital markets as they contribute to growth, competitiveness and the public good.

As discussions on supervisory reforms move forward, it will be important to clarify the specific supervisory challenges that the reforms are intended to address. This includes considering how potential EU-level changes would strengthen audit quality and, in turn, contribute to deeper and more resilient capital markets.

A need for balance

Targeted reforms have merit when they address clear supervisory gaps and improve cross-border consistency. At the same time, further harmonisation or centralisation runs the risk of overlooking effective existing practices, duplicating current structures, and creating unnecessary costs. A balanced and targeted approach is therefore fundamental to achieve the SIU’s objectives.

Our principles for supervisory reforms

Earlier this year, Accountancy Europe stressed the importance of targeted and evidence-based supervisory reforms that deliver meaningful impact. In the audit field, this translates into the following principles:

• clearly identify the problems reforms are intended to solve, and test whether and where specific EU-level action is the most appropriate solution
• preserve best practices from national oversight models, embedding rather than discarding them
• ensure meaningful stakeholder engagement whenever supervisory powers are allocated to the EU level, with pan-EU supervisors committed to learning ‘from the ground’
• avoid duplication with existing corporate reporting enforcement initiatives
• promote simplification and efficiency, rather than adding complexity or burdens for firms and supervisors

Stakeholder engagement is essential

Reforms in such a critical area must not be rushed. A thorough process of consultation and assessment is essential before concrete proposals are developed. This requires genuine and inclusive dialogue with the audit profession as well.

Further down the line, European Supervisory Authorities (ESAs) must also be adequately resourced to assume any new responsibilities credibly. Transfers of supervisory mandates should also come with commensurate accountability and commitment to engaging with market actors ‘on the ground’, as also suggested by the European Parliament in its September 2025 own-initiative report on the SIU.

The profession stands ready

Accountancy Europe looks forward to assessing the Commission’s forthcoming proposals. For years we have worked on technical and political dimensions to help develop a robust European audit ecosystem. We remain committed to contributing constructively to this debate by sharing expertise, identifying practical challenges, and helping policymakers reflect the diversity of Europe’s audit ecosystems.

Accountancy Europe’s CEO, Eelco van der Enden, commented: “our guiding principle is clear. Any reforms should contribute to capital market integration, and enhance trust in audit and corporate reporting, while preserving effective existing practices and avoiding unnecessary disruption.”