Our new analysis explores market developments from January 2025 to April 2026, identifying trends shaping private equity’s future in European accountancy
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Accountancy Europe has published an update on private equity (PE) activity in European accounting, tax, advisory and audit firms. Drawing on a deal-level database, the paper analyses developments from January 2025 to April 2026. It assesses how the market has evolved and whether the trends identified in the June 2025 paper continue to develop.
In 2025, the paper identified 385 transactions involving accountancy and audit firms, compared with 43 in 2022. The figure includes direct investments and roll overs. A further 131 transactions were identified in the first four months of 2026. Audit firms accounted for 139 transactions in 2025, representing 36% of the total. Only 15% of transactions involved firms with public interest entity audits.
The UK remains the largest market, recording 92 transactions in 2025 and 41 in the first four months of 2026. However, its share decreased significantly compared with the 40% observed over the previous decade. The paper suggests that PE-backed consolidation is becoming less concentrated in a single jurisdiction. Norway and Sweden recorded high levels of activity. The paper highlights the growing importance of the Nordic region in the PE-backed consolidation of audit firms.
There are no clear signs of a broad slowdown. PE investment has moved from an emerging trend to an established feature of the European accountancy and audit landscape. Its geographic footprint has broadened, transaction volumes are heavily driven by a small number of large PE-backed accountancy groups acquiring smaller practices, and some platforms are beginning to face questions around exit and refinancing.
Accountancy Europe has responded to the IAASB’s proposed revision of ISRE 2410 on reviews of interim financial information. While supporting the modernisation of the standard, we caution that some proposals could increase work effort without changing the engagement’s limited assurance nature.
Concerns relate to the proportionality of the proposed going concern requirements and the risk of blurring the distinction between an interim review and an audit. We also call for greater use of knowledge obtained through the annual audit to avoid unnecessary duplication and help preserve the timeliness and proportionality of interim reviews.
Accountancy Europe has provided input to IESBA’s Post-Implementation Review of the Non-Compliance with Laws and Regulations (NOCLAR) provisions. Drawing on feedback from 23 member bodies across Europe, the response highlights the different ways NOCLAR has been implemented across Europe.
Fourteen jurisdictions have fully adopted the IESBA provisions and two have partially adopted them, while several others have equivalent requirements through national legislation or professional regulation. Overall, the feedback indicates no significant implementation gaps that would require fundamental changes to the existing provisions.
The International Auditing and Assurance Standards Board (IAASB) has released for public consultation proposed revisions to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The revisions aim to keep the requirements appropriately tailored to audits of less complex entities.
The Exposure Draft incorporates recent revisions to auditor responsibilities relating to fraud. It also addresses recent developments in auditor responsibilities related to going concern. For listed and public interest entities, it proposes replacing “listed entity” with “publicly traded entity”, for which use of the standard is prohibited. Comments are due by 17 November 2026.
The IAASB has published an Exposure Draft proposing targeted revisions to core ISAs to enhance the risk-based audit framework and reflect developments in technology and evolving business practices.
The proposals cover amendments to ISA 330, ISA 500 and ISA 520, together with conforming and consequential changes to other standards. According to the IAASB, the proposed revisions aim to address developments in technology and data, improve the consistency of the standards, and clarify certain requirements and application material. The consultation is open for public comment until 15 December 2026.
The International Federation of Accountants (IFAC) has updated its Private Equity Investment in Accountancy resource with new data and analysis on market developments. The update highlights that private equity investment continues to drive consolidation across the profession, with more than 200 direct investments leading to nearly 1,200 subsequent “roll-up” transactions by the end of the second quarter of 2026.
The Financial Reporting Council’s (FRC) revised Audit Enforcement Procedure (AEP) took effect on 1 July 2026. Enforcement remains central to the FRC’s role in acting in the public interest. The updated framework supports a more integrated regulatory approach by aligning the FRC’s supervisory, investigatory and enforcement activity more closely.
The revised AEP introduces broader and more flexible routes to resolution. Under the Early Admissions Process, Executive Counsel may agree to an investigation subject carrying out their own self-review as an alternative to a full investigation. The Accelerated Procedure uses information already held by the FRC as the basis for proposing breaches and sanctions. These routes allow more targeted and timely responses while supporting faster system-wide improvement and learning.
The FRC has published its Annual Enforcement Review 2026, setting out key findings from its enforcement activity. It spotlights issues in the quality of financial reporting and audit and the role of firm-level systems and controls. It also explains how enforcement insights inform supervisory activity and work on regulatory standards.
The Review outlines new routes to resolution under the revised Audit Enforcement Procedure, designed to enable earlier engagement and more proportionate and timely outcomes while maintaining rigour and quality. The FRC states that enforcement underpins public and investor confidence and has educative and deterrent value, while timely outcomes should help drive swifter improvements in financial reporting and audit.
The Royal Netherland Institute of Charted Accounts (NBA) and The Institute of IT Auditors in the Netherland (NOREA) jointly published Guideline 2: AI applied, a practical guidance document for accountants and IT auditors on the responsible use of artificial intelligence in professional practice. As a follow-up to AI in Control, the publication provides concrete use cases, including contract review, journal entries, fraud detection, and ESG reporting.
The guidance highlights that robust validation, transparent and reproducible processes, ethical governance, and sound professional judgement are fundamental to ensuring audit quality, accountability, and sustained public trust in the age of AI.
The German Institute of Public Auditors (IDW) has issued practical guidance on addressing the use of IT in financial statement audits under ISA 315 (Revised 2019) and ISA 330.
The guidance responds to the expanded requirements concerning IT, particularly within the information system and control activities components of internal control. It supports auditors in understanding an entity’s information-processing activities, identifying relevant IT applications and IT-related risks, and determining when controls over information processing and general IT controls should be assessed and, where appropriate, tested for operating effectiveness.
The UK government has launched a consultation on modernising corporate reporting, including a significant proposal to extend the existing small-company audit exemption to certain medium-sized companies.
Under the proposal, eligible medium-sized companies would be able to choose whether to have a statutory audit, subject to specified conditions and safeguards. The government is seeking views on the potential benefits, risks and appropriate eligibility criteria, including how the change could affect access to finance, stakeholders and the audit market. The proposal forms part of wider reforms aimed at simplifying corporate reporting and reducing administrative burdens on businesses.
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