With just six months to go until the 2014 European Audit Regulation and Directive (ARD) comes into effect, final decisions on audit tendering, auditor independence and other key requirements are now being taken.

The Audit Directive and accompanying Regulation will have a substantial impact on the UK professional services market. The Directive affects the audit of annual and consolidated financial statements, while the Regulation establishes further requirements for the audit of public interest entities (PIEs), whose scope will include unlisted banks, building societies and insurers, alongside companies with securities listed on a regulated market.