EY - EU audit legislation

EU audit legislation

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The European Union (EU) recently approved a new legislation which imposes, among other things, mandatory audit firm rotation as well as significant restrictions on non-audit services to Public Interest Entities (PIEs) in the EU and European Economic Area (EEA) countries. Multinational companies headquartered outside of the EU also need to be aware of the requirements, as they may apply to some of their EU subsidiaries.

Complying with the legislation will be challenging and will require advance planning to minimize any potential business disruptions. Companies need to act now to have an adequate set of options and scenarios to:

  • Comply with the regulation timeline
  • Navigate through a more complex environment across the EU Member States
  • Manage cost implications
  • Revisit their relationship with professional service advisors

We work closely with the regulators across the EU, constantly providing comments as the new legislation is adopted by Member States, and we understand the challenges and issues that companies have to address. We continue to analyze the legislation to assess its implications for companies, investors and the accounting profession, and work to support its successful implementation.

As each company will be impacted in a different way, we are committed to bringing the right people in the right locations to provide proactive and timely insights and experience to help companies:

  • Understand if and how the legislation will affect them
  • Navigate through the transition
  • Enhance their confidence in their financial reporting
  • Strengthen the relationship with their professional service advisors