Recent Developments in the Provision of Non Audit Services by Audit Firms

What is it about?

This paper consolidates on a previous paper "Regulating the International Audit Market and the Removal of Barriers to Entry: The Provision of Non Audit Services by Audit Firms and the 2006 Statutory Audit Directive", by highlighting the relevance of the DIRECTIVE 2014/56/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 which amends Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts.

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Why is it important?

According to the DIRECTIVE 2014/56/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014: 1) it is necessary to further harmonise those rules at Union level in order to allow for greater transparency and predictability of the requirements applying to such persons and to enhance their independence and objectivity in the performance of their tasks. 2) It is also important to increase the minimum level of convergence with respect to the auditing standards on the basis of which the statutory audits are carried out. 3) Moreover, in order to reinforce investor protection, it is important to strengthen public oversight of statutory auditors and audit firms by enhancing the independence of Union public oversight authorities and conferring on them adequate powers, including 4) investigative powers and the power to impose sanctions, with a view to detecting, deterring and preventing infringements of the applicable rules in the context of the provision by statutory auditors and audit firms of auditing services."

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