Study on the Audit Directive (Directive 2006/43/EC as amended by Directive 2014/56/EU) and the Audit Regulation (Regulation (EU) 537/2014)
Final report
Study on the Audit Directive (Directive 2006/43/EC as amended by Directive 2014/56/EU) and the Audit Regulation (Regulation (EU) 537/2014)
Final report
Publication metadata
In 2014, the European Union (EU) adopted an important reform of the EU Statutory Audit Market through two legislative instruments: Directive 2014/56/EU amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (the Audit Directive) and Regulation No 537/2014 on specific requirements regarding statutory audit of public-interest entities (the Audit Regulation). The reform had four objectives: enhance transparency for investors; reinforce independence of auditors towards their clients; promote competition in a highly concentrated market dominated by the 'Big Four'; and strengthen pan-EU supervision. This study provides data and analysis of the impact of the transposition and implementation of certain provisions of the Audit Directive and Regulation (i.e. assurance and reporting requirements for statutory auditors, mandatory rotation and appointment of auditors, prohibition of certain non-audit services, and caps on fees for non-audit services) on the achievements of the reform’s objectives.