Reinforcing the role of the audit committees

The reform introduces a number of new responsibilities for audit committees of PIEs. These measures relate to the independence and sector expertise of audit committee members, and mandate that at least one member be competent in auditing and/or accounting. In addition, the legislation reinforces the role of the audit committee by enlarging its responsibilities to include monitoring all aspects of the statutory audit such as performance, independence and the provision of non-audit services, as well as reappointment or re-tendering decisions.

Although most of these practices are already performed today, and have long been held as “best practices”, the EU goes one step further by rendering them binding by law.

For a detailed overview of the new responsibilities of audit committees, please consult our Factsheet.