Fact sheet 4: Expanded Auditor Reporting Requirements

Expanded Auditor Reporting Requirements

The EU audit legislation introduces additional reporting requirements for auditors. They primarily impact the statutory audit report, as well as disclosures to the audit committee and supervisory bodies of EU public interest entities. Read this fact sheet to gain an understanding of the new requirements and how the legislation compares to current practice.


EU Audit Reform introduces additional requirements for the statutory auditor of EU-based public interest entities (PIEs) covering the statutory audit report, audit committee reporting and reporting to supervisory bodies of PIEs.

The Audit Report

The legislation includes a series of audit reporting requirements designed to enhance investors’ understanding of the audit process, including the critical judgements made during the audit.

For PIEs, the audit report will need to provide, in support of the audit opinion, a description of the most significant assessed risks of material misstatement, including those due to fraud. It will also need to include a summary of the auditor’s response to those risks and, where relevant, key observations arising with respect to them.

For ALL statutory audits in the EU (not just those of PIEs), the audit report will need to provide a statement on any material uncertainty relating to events or conditions that may cast significant doubt about the entity’s ability to continue as a going concern.

The Additional Report

Auditors of PIEs will be required to provide a written report to the audit committee. This is already the case in some Member States, but will now apply for PIEs throughout the EU. This report will provide more detailed information on the results of the audit performed, together with explanatory text.

Key questions addressed by this fact sheet include:

  • Are the new audit report requirements in line with the International Auditing and Assurance Standards Board (IAASB) requirements?
  • Are there any Member State options in relation to auditor reporting or audit committee reporting?
  • When does the additional report have to be provided to the audit committee?

This fact sheet applies to the EU baseline rules. The final regulatory environment will be impacted by how each EU Member State interprets the legislation and any derogations they choose to implement.

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