Audit Regime: All Change For Public Interest Entities

From 17 June 2016 there are changes to the audit regime, in particular for public interest entities (PIEs). PIEs include companies admitted to the Official List and traded on the main market of the London Stock Exchange, credit institutions and insurance undertakings.

The changes derive from a new EU regulation ((EU) No. 537/2014) on the Statutory Audit of Public Interest Entities and a directive (2014/56/EU) amending the Statutory Audit Directive (2006/43/EC). Together these new measures aim to strengthen auditor independence and increase diversity in the audit market. They also create a single market for audit services and introduce a co-ordinated approach to the supervision of auditors in the EU.