Read our new publication on third party ownership in the accountancy & audit sector, identifying key risks & opportunities
Reassessing requirements improves policymaking, but early CSRD revisions create uncertainty undermining trust in EU legislation. Read our views
“Beyond private equity: third party ownership in the accountancy and audit sector” is our second publication that broadens the focus to external capital participation in the accountancy and audit professions. It follows our June 2025 publication on private equity (PE) investments.
This new publication analyses and highlights both risks and opportunities. It also examines the motivations driving third party ownership investors to enter the accountancy and audit market, and why parts of the profession are increasingly open to this evolution.
A key section explains the types of third party investors and provides a deeper look at PE structures. Typically, when a PE fund invests in an accountancy or audit firm, the business undergoes a legal restructuring into two entities: an audit firm and a non-audit firm. The non-audit firm usually provides professional services and resources to the audit firm under an Administrative Service Agreement (ASA).
Accountancy firms attract third party investors due to:
From the firms’ perspective, engaging with external investors offers:
Risk linked to third party investors:
Opportunities linked to third party investors:
The CEAOB has issued its response to the European Commission’s (EC) review of the Digital Operational Resilience Act (DORA) and its possible extension to statutory auditors and audit firms. While recognising that ICT and cyber-resilience are increasingly critical for the audit profession, the CEAOB cautions against automatically bringing all audit firms under DORA’s framework. Auditors have a different risk profile from financial institutions, and a blanket extension could impose disproportionate obligations, particularly on smaller firms.
Instead, the CEAOB highlights that enhancing ICT and cyber-security requirements may be more effectively achieved by revising the existing EU Audit Directive and Audit Regulation. A targeted, risk-based approach would reinforce digital resilience across the profession while avoiding unnecessary administrative burden. The CEAOB also calls for a careful impact and cost-benefit assessment before any regulatory expansion is considered.
On 8 December, the European Parliament (EP) and the Council reached a political agreement on the Omnibus proposal amending sustainability reporting.
Below we share a summary of the key elements regarding the Corporate Sustainability Reporting Directive (CSRD) as per the provisional agreement:
The EP Legal Affairs (JURI) Committee approved the provisional agreement on 11 December. The EP plenary vote is scheduled on 16 December. The Council must also approve the agreement.
The EC has launched a consultation on the Skills Portability Initiative (SPI), aimed at improving the transparency and digital portability of skills and qualifications across the EU.
The SPI’s work to modernise recognition procedures and introduce interoperable digital credentials may eventually facilitate smoother cross-border mobility for audit professionals and enhance the comparability of qualifications. Accountancy Europe will respond to this consultation.
The International Auditing and Assurance Standards Board (IAASB) recently released a set of illustrative assurance reports to support implementation of the ISSA 5000.
These reports demonstrate how practitioners can apply ISSA 5000 in real-world scenarios for example:
They also include examples of modified conclusions (qualified, adverse or disclaimer), helping auditors navigate cases where sustainability information is incomplete or problematic.
