As the EU Audit Regulation & Directive (ARD) is due to come into force, Sarah Perrin ACA gauges opinion about the impact on UK firms and how the audit market for listed entities will be forced to change
17 June is a big deal in audit terms, being the date when the EU’s audit reform legislation finally bites. Both the Department for Business, Innovation & Skills (BIS) and the Financial Reporting Council (FRC) have now issued the final elements of their respective interpretations of the EU Audit Regulation and Directive (ARD) requirements although certain areas such as limited liability partnerships (LLPs) still need to be pinned down.
Implementing the ARD has necessitated a raft of changes, including the development of a new, more streamlined procedure by which the FRC, as the UK’s new Competent Authority for audit regulation, can fulfil its duties for investigating and sanctioning breaches by statutory auditors of public interest entities (PIEs) (see below).
