EY - EU audit legislation

EU audit legislation

Member States implementation

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The information below summarizes how each Member State may implement the numerous options in the EU Audit Legislation. The analysis is subject to change and does not represent a final view at this stage. For the latest information, please speak to your usual EY contact.

EY - EU Legislation Map
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Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.
×

Firm and partner rotation

Maximum initial duration period

Member States may adopt an initial engagement period that is shorter than 10 years.

Permit mandatory firm rotation (MFR) extension (if tender)

Member States may allow an extension of the initial engagement period by up to 10 years following a competitive tender.

Permit MFR extension (if joint audit)

Member State may allow an extension of the initial engagement period by up to 14 years where there is a joint audit.

Joint audit mandatory Joint audit is the expression commonly used to refer to the appointment of more than one statutory auditor or audit firm by the PIE. The appointed auditors present a joint audit report to the audited entity and bear the full responsibility for the audit.
Key Audit Partner rotation period New firm rotation requirements does not replace the need to rotate audit partners. There is still a requirement for ‘key audit partners’ to rotate after a maximum of 7 years, followed by a 3-year cooling-off period. Member States have the option to elect shorter partner rotation periods.

Non-audit services (NAS)

Add to NAS blacklist

Member States have the possibility of prohibiting more non-audit services than those in the “black list” if the services represent a threat to independence.

Add to NAS restrictions (white list) Member States may regulate those services that are still permitted (i.e., by introducing a formal “white list” of permitted services).
Issues with the Cap Member States may establish stricter rules for the cap.
Permit Tax and valuation services derogation Member States can chose to derogate from the list of prohibited NAS to allow the provision of certain tax and valuation services when these services are immaterial or have no direct effect, separately or in aggregate, on the audited financial statements.
Legal Services interpretation will be narrow (i.e. Just role of General Counsel) Reflects if Member States have a narrow definition of what is meant by “General Counsel” (i.e., the provision of a General Counsel rather than the provision of general legal advice).
PIEs
Expanded definition in 2006 Directive Identifies if Member States decided to expand the original PIE definition in 2008. Member States had the option to designate other entities as PIEs, for instance undertakings that are of significant public relevance because of the nature of their business, their size or the number of their employees.
Further expansion with 2014 Directive Identifies to what extent Member States are going to modify their decision made in 2008 on the original PIE definition.