How are Member States adopting the EAR?

The regulatory environment for businesses across Europe is largely affected by individual Member State legislations. As the EU Audit Reform (EAR) contains several options for EU Member States that extend beyond the EU baseline measures, rules can vary from one Member State to the next. Our aim is to provide you with a detailed overview of how local legislation is being adopted.

To implement the EAR, each Member State was required to align the EU legislation with its national legislation before 17 June 2016. However, several member states are still in the process of finalizing their respective laws. Because Member States have 51 options in the Directive and 32 in the Regulation one can find a patchwork of diverging national rules in the EU. Mazars will keep you informed of local legislations, and provide you with a detailed overview of the national laws in place as they are being adopted. 

Austria

The Austrian government completed implementation of the EAR by vote in parliament on 19 May 2016. The new “Abschlussprüfungsrechts-Änderungsgesetz 2016 – APRÄG 2016“ entered into force on 17 June 2016.

Belgium

Belgium completed the implementation of the EAR by passing the following pieces of legislation: Law laying down various economic provisions on June 29, 2016, and the Law on the organisation of the profession and the public supervision of auditors on December 7, 2016, effective December 31.

Bulgaria

The Bulgarian parliament passed the new Independent Financial Audit Act, published on November 29, 2016. The new act transposed Directive 2014/56/EU and Regulation (EU) No 537/2014 into the Bulgarian regulatory framework. The law became effective at the beginning of 2017.

Czech Republic

The Czech Republic finalised the transposition of the EAR by passing amendments to the Act on Auditors on August 25, 2016, effective October 1, 2016.

Denmark

The Danish Parliament finalised the implementation of the EAR in June 2016 by passing amendments to the Danish Audit Act. The amendments came into effect on June 17, 2016.

Finland

The EAR implementation was finalised with the passing of Law 622/2016, which amended the new Audit Act (1141/2015) passed in 2015. The law became effective in August 2016.

France

The European audit legislation in France has been finalized and adopted on 18 March 2016. The legislation entered into force on 17 June 2016.

Germany

The German Federal Government completed implementation of the EAR in two phases: It adopted the Audit Reform Act on 17 March 2016 and the Audit Oversight Reform Act on 18 December 2015. The new rules entered into force on 17 June 2016.

Greece

Greece finalised the transposition of the EAR into its national regulatory framework by passing the New Greek Audit Law (Law 4449/2017), voted on January 19, 2017.

Hungary

The Hungarian government completed implementation of the EAR by vote in parliament on 10 May 2016. The new rules entered into force on 17 June 2016.

Ireland

The Irish government implemented the EU regulation by process of Statutory Instrument (S.I. No. 312 of 2016) on 15 June 2016. The new rules entered into force on 17 June 2016.

Italy

The transposition of the European Audit Reform was finalised in Italy with the adoption of the Legislative Decree n. 135 of July 17, 2016. The new rules became effective on August 5, 2016.

Latvia

Latvia implemented the European Audit Reform by passing amendments to the Law on Sworn Auditors in December 2016.

Lithuania

In December 2016, the Lithuanian parliament passed the Law on Audit, effective March 1, 2017, thus finalising the process of transposition of the European Audit Reform.

Luxembourg

Luxembourg passed the Law of 23 July 2016 on the audit profession (n°6929) that transposed the EAR into its legal framework.

Malta

Malta implemented the European Audit Reform by passing amendments to the Accountancy Profession Act in July 2016

Netherlands

The EU audit reform was finalisised in the Netherlands with the adoption of the Law on Oversight Audit Firms (Wet toezichtaccountantsorganisaties), enacted on January 1, 2017.

Poland

Poland finalised the implementation of the EAR by passing the Act on Statutory Auditors, Audit Firms and Public Supervision that entered into force on June 21, 2017.

Portugal

The Portuguese government completed implementation of the EAR on 9 September 2015, when the Portuguese legislators adopted Law 140/2015 on the reform of the Decree on Statutory Audit and Law 148/2015 on supervision of the audit profession. The new rules entered into force on 17 June 2016.

Slovakia

The Slovak government completed implementation of the EAR on 11 November 2015, when the National Council of the Slovak Republic adopted its act on Statutory Audit and Accounting. The new rules entered into force on 17 June 2016.

Spain

The Spanish government completed implementation of the EAR on 9 July 2015, and obtained the Spanish Parliament's final approval of Spain’s new audit law. The legislation was published on 21 July 2015. The majority of the provisions entered into force from the first financial year commencing on or after 17 June 2016.

Sweden

The Swedish government completed implementation of the EAR by vote in parliament on 18 May 2016. The new rules entered into force on 17 June 2016.

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