What the EU is doing and why
A statutory audit is a legally required review of financial records. The role of a statutory audit is to certify the financial statements of companies or public entities. An audit provides stakeholders such as investors and shareholders with an opinion on the accuracy of companies’ accounts. As a result, statutory audits contribute to the orderly functioning of markets by improving the confidence in the integrity of financial statements.
In the field of statutory auditing, the Commission's goals are to
- improve the independence of statutory audit firms and auditors from the entity being audited
- enhance the informational value to investors of audit reporting
- help cross-border provision of statutory audit services in the EU
- contribute to a more dynamic audit market in the EU
- enhance audit supervision
- foster convergence and cooperation with non-EU countries
Cooperation between European national audit authorities
The Committee of European Auditing Oversight Bodies (CEAOB) was established in 2016 to improve cooperation between European national audit authorities in the EU. The CEAOB contributes to the proper application of EU audit legislation by facilitating supervisory convergence.
Market monitoring
Regulation No 537/2014 requires national authorities responsible for audit oversight and the European Competition Network to draw up reports on developments in the national markets for statutory audit services to public-interest entities (PIEs). The Commission then uses these reports to draw up joint reports covering the whole EU.
Relations with third countries
Companies are increasingly operating on a global basis and are listed on capital markets in different continents. To ensure investors are protected by effective global oversight of auditors the EU cooperates internationally on the supervision of auditors.
The EU has adopted several equivalence decisions recognising that the public supervision of auditors in certain non-EU countries meets the same requirements that are in force in the EU through the audit directive.
The EU has also adopted several decisions recognising that the audit supervision authority of certain non-EU countries is adequate to exchange audit working papers with relevant authorities in EU countries.
Policy making timeline
- 5 March 2024Report - Statutory audit services
- 1 December 2022Study - Audit Directive
- 28 January 2021Report - Statutory audit services
- 7 September 2017Report - Statutory audit services
- 27 May 2014Legislation - Statutory audits
Publication in the official journal of the Directive on statutory audits of annual accounts and consolidated accounts and of the Regulation on specific requirements regarding statutory audit of public-interest entities.
- 5 June 2008Recommendation - Civil liability of statutory auditors and audit firms
- 6 May 2008Recommendation - External quality assurance for statutory auditors and audit firms
- 16 May 2002Recommendation - Statutory auditors' independence
Statutory Audit Regulation - 537/2014/EU
Basic information
- Text of the Statutory Audit Regulation (537/2014/EU)
- Summary of the legislation: Insurance and reinsurance
Legislative history
Statutory Audit Directive - 2014/56/EU
Basic information
Transposition by EU Member States
The Statutory Audit Directive was transposed by all EU Member states into their national law.
Legislative history
Audit Directive - 2006/43/EC
Basic information
- Text of the Audit Directive (2006/43/EC)
- Summary of the legislation: The statutory audit — ensuring accurate company financial statements
Delegated and implementing acts
Transposition by EU Member States
- Transposition history of the Audit Directive by EU Member States
- Guidance on the implementation and interpretation of the Audit Directive