In the context of the implementation of the new European audit legislation, FEE seeks to address in this paper issues that Public Interest Entities (PIEs), their audit committees and auditors may face in relation to interpreting the requirements of the auditor independence provisions in the legal texts in relation to the provision by auditors of non-audit services (NAS) to statutory audit clients which are PIEs.
The drafting of certain articles in the legal texts leaves considerable scope for interpretation. The European accountancy profession is committed to informing the debate with the objective to enhance consistency in scope and in meaning as far as possible. In addition, as detailed further below, translation issues have emerged, which could also impact on the objective of ensuring consistent application of the legislation across the EU.
Whilst it is not realistic to expect all Member States to adopt the same approach to implementation, the extent to which there is divergence will increase complexity and costs to business and will not contribute to enhancing confidence in doing business in the EU.
This publication is the second in a series of briefing papers that FEE has done to enhance stakeholders’ understanding of the EU reform. Please also see our papers on public oversight, appointment of auditors and auditor communication.