In the context of the new European audit legislation, FEE seeks to provide an overview of the changes included in the updated European Union (EU) provisions regarding public oversight of statutory auditors and audit firms. These provisions are included in the two following pieces of legislation:
• The Directive 2014/56/EU1 amending Directive 2006/43/EC2 on statutory audits (2006 SAD) and containing a series of amended and new requirements governing every statutory audit in the European Union (hereafter referred to as “the Directive”);
• The Regulation (EU) No 537/20143 containing additional requirements that relate specifically to statutory audits of Public Interest Entities (PIEs) in addition to the ones stated in the Directive (hereafter referred to as “the Regulation”).
This publication is the first in a series of briefing papers that FEE has done to enhance stakeholders’ understanding of the EU reform. Please also see our papers on provision of non-audit services, appointment of auditors and auditor communication.