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ARTICLE · 25 JULY 2014

Statutory Audit Directive And Regulation Published In Official Journal

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On 27 May 2014, the directive amending the Statutory Audit Directive and a new regulation regarding the statutory audit of public interest entities were published.

European UnionAccounting and Audit
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On 27 May 2014, the directive amending the Statutory Audit Directive and a new regulation regarding the statutory audit of public interest entities were published in the Official Journal. The legislation will come into force 20 days later. The regulation will apply in member states from 17 June 2016, other than the prohibition on "Big Four only" contractual clauses (Article 16(6)), which will apply from 17 June 2017. Member states will be required to adopt the necessary measures to implement the directive by 17 June 2016.

The legislation is aimed at addressing the weaknesses highlighted in the European audit system following the 2008 financial crisis. Key elements of the regulation include:

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