Consultation outcome

Auditor regulation: effects of the EU and wider reforms

This consultation has concluded

Detail of outcome

Following Baroness Neville-Rolfe’s Written Ministerial Statement, the Department for Business, Innovation and Skills is continuing to work with the Financial Reporting Council (FRC), Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA).

Feedback received

Auditor regulation: effects of the EU and wider reforms - responses

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Detail of feedback received

We received 39 written responses from:

  • public (1)
  • small businesses (2)
  • large businesses (17)
  • organisations (19)

Original consultation

Summary

Discussion document on the implications of the EU and wider reforms of statutory auditor regulation.

This consultation ran from
to

Consultation description

This discussion document asks for your views on a range of reforms to the regulatory framework for statutory audit.

Within the context of the new European Union audit reforms (Directive 2014/56/EU and Regulation No 537/2014), this document looks at the legislative and non-legislative changes needed to:

  • improve standards for the audit of public interest entities (PIEs)
  • improve confidence in the independence of auditors
  • avoid excessive concentration in the audit market
  • make audit reporting more informative

The document looks at the structure for regulation, oversight and standards. It takes into account:

  • the new European requirements
  • recent Competition and Markets Authority measures and recommendations
  • wider work underway to refine technical and ethical standards

After consideration of responses to this discussion document next year, we will run a formal consultation on detailed proposals to change the audit regulatory regime.

The closing date for responses to this discussion document has been extended from 19 February to 19 March. This is to allow interested groups more time to develop as full a response as possible on the issues considered.

You can find important legal information about the auditor tendering and rotation framework in the supplementary information document.

Documents

Auditor regulation: discussion document on the implications of the EU and wider reforms

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Member state options table for Regulation (EU) No 537/2014

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Member state options table for Directive 2014/56/EU

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Published 17 December 2014
Last updated 28 October 2015 + show all updates
  1. Added summary of responses.
  2. Linked to update on implementation of the EU Audit Directive and regulation.
  3. Added public responses.
  4. The supplementary document was updated. The updates clarify the intended effect for companies whose financial year will begin on 16 June 2016. They also provide further links to information about the proposed tendering and rotation requirements in the discussion document.
  5. Legal information about the auditor tendering and rotation framework added in a supplementary document.
  6. Updated closing date from 19 February to 19 March.
  7. First published.