Our Financial Reporting and Corporate Governance Expert Groups contributed to our response to BIS' consultation on Auditor Regulation: Discussion document on the implications of the EU and wider reforms.
We welcomed BIS’ commitment to putting in place the best possible regime to respond to a highly developed business economy and particularly supported the development of an auditor regulatory regime which serves the needs of companies. We noted our concern regarding the requirements as set out in the Directives and Regulations as applicable to Public Interest Entities (PIEs) as these could be costly, time-consuming and therefore detrimental to small and mid-size quoted companies' ability to grow. We urged BIS not to allow the FRC to effectively widen the EU definition of PIEs for statutory purposes and by applying the stricter requirements to other entities.
