The new Audit Directive and Regulation were published in the Official Journal of the European Union yesterday (27 May 2014). As a result they are now a part of EU law with a coming into force date of 16 June 2014.
Commenting on this, Melanie Mclaren, Executive Director, Codes and Standards said:
“The FRC welcomes today’s publication of the audit regulation and directive in the official journal of the EU. The time for discussion and debate on the proposals has been completed, and we now need to move to effective implementation.
The FRC is pleased that the concept of audit tendering , which the UK introduced in 2012 to enhance the quality of audits and stimulate trust by the investor community, alongside audit rotation on a longer timescale. This mechanism accompanied with stricter rules on non-audit services, enhanced auditor reporting and increased Member State pan EU cooperation in the Committee of European Audit Oversight Bodies (CEAOB) is designed to strengthen the workings of the single market and benefit investors in Europe as well as in the UK.
The FRC stands ready to work closely with BIS as it implements the necessary legal changes. ”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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