KPMG Update on EU Audit Reforms

KPMG released an update today on the status of EU member states’ adoption of “individualized” versions of the new EU audit rules in its “Defining Issues” publication.  Rules include those on mandatory firm rotation and nonaudit services restrictions.  Many more countries have not yet adopted the rules, which allow significant tailoring and go into effect June 17, 2016.  The seven (7) nations that have have adopted the rules have unfortunately moved in different directions. According to a KPMG survey cited in the publication, a third of the largest 125 EU companies have put their audits out to bid and 75 percent of those have resulted in an auditor change.   In addition, other countries, e.g. India and Brazil, either have or are considering similar audit reforms as the EU according to the article.