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).
Detail of feedback received
We received 39 written responses from:
- public (1)
- small businesses (2)
- large businesses (17)
- organisations (19)
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.