The EAR was launched following the 2008 global financial crisis. Though banks, rating agencies and hedge funds were the primary suspects, the European Commission (EC) also raised the issue of the role of auditors and their failure to detect the necessary warning signs leading up to the crisis. We invite you to learn more about why the EC adopted this reform in 2014 and what this means for the European audit market.
The EAR introduces some noteworthy changes in the European audit market, that have an effect on businesses all over Europe, particularly Public Interest Entities (PIEs). One of the most important changes is the mandatory rotation requirement for auditors of PIEs. We invite you to learn more about these changes and assess how they affect your organization.
The EAR is effective since 17 June 2016.
To gradually introduce the new measures, the EU has devised a transitional regime for ongoing audits that are entering the new regulatory environment.