European audit market reforms

Grant Thornton welcomes the European Parliament’s plenary approval of the Regulation and Directive to reform the European audit market, which will substantially address investor concerns over auditor communication, long tenure, and excessive volume of non-audit services.

“We welcome the agreement as helpful to European investors and we anticipate that the measures will have long-term, meaningful impact,” said Ed Nusbaum, Grant Thornton global CEO.

“The audit reform discussions in the EU, the UK, the Netherlands, India and elsewhere have raised the profile of investor concerns. It is clear that some companies have noted the concerns and are already reacting accordingly, but addressing these concerns in the law ensures that there will be change across the European market and that change will be permanent.”