1 August 2014 — Publication
FEE seeks to provide an overview of the changes included in the updated European Union (EU) requirements regarding the appointment of the auditor and the duration of the audit engagement.
These requirements introduce a number of Member State options relating to this topic and FEE is committed to informing the choice of Member States with the objective of creating a workable single market in this respect and enhancing consistency of application throughout the EU as far as possible.
Whilst primarily targeted at the auditing profession in the EU, the audit legislation also imposes requirements on businesses, i.e. on Public Interest Entities (PIEs) and their audit committees.
Therefore, it is preferable to help promote the consistency of the regulatory framework governing statutory audit across the EU and to ensure that any additional burden on business is minimised given the cost implications that may result for them. EU Member States have a one-time opportunity to get this right and should keep the burden on business in mind when transposing, applying and implementing this legislation in their jurisdictions.
This publication is the third in a series of briefing papers that FEE has done to enhance stakeholders’ understanding of the EU reform. Please also see our papers on provision of non-audit services, provision of non-audit services and auditor communication.