The FRC as the UK’s competent authority for audit contributed to the first report on the EU market for Public Interest Entity (PIE) audit which has now been published.
The report provides a baseline for monitoring the impact of new statutory audit regulation throughout the EU. The UK is the EU’s most significant market representing over half of market revenues.
The report was submitted to the Council, European Central Bank, European Systemic Risk Board and European Parliament, and assesses:
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market concentration levels
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risks to audit quality and measures to mitigate them
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performance of audit committees.
A number of limitations were encountered when consolidating national data at EU level. As the new EU audit rules became applicable only on 17 June 2016, the data in the national reports was gathered under the previous EU legal framework (Directive 2006/43/EC). The new audit rules have brought several changes, on issues such as access to and collection of data by the NCAs. The availability of data at national level has conditioned the level of detail provided by some Member States. This explains some of the missing information in the national reports.
In addition, data collection in many Member States covers different reference periods, as audit firms have diverse financial-year periods for reporting. This makes EU-wide data comparison and consolidation more challenging.
Full press release
Full report
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