The new Audit Directive and Regulation were published in the Official Journal of the European Union on 27 May 2014.
As a result they are now a part of EU law and will be in force from 16 June 2014.
European Parliament in plenary session approved the preliminary agreement on this revised Directive and new Regulation on statutory audit on 3 April 2014.
The new rules will strengthen the quality of statutory audit, reinforce the independence of statutory auditors, and improve supervision. Stricter requirements will apply to the statutory audit of public-interest entities.
Commenting on this, FRC’s Executive Director for Codes and Standards, Melanie Mclaren, 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 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.’