APPROVAL OF STATUTORY AUDITORS AND AUDIT FIRMS

53) Shall the natural persons who carry out the statutory audits on behalf of the audit firm satisfy the conditions imposed by Articles 4 and 6 to 12 of the Audit Directive, including the additional specific requirements of Articles 7(2), Article 8(3), the second subparagraph of Article 10(1) and the fourth subparagraph of Article 14(2) of the Audit Directive? Shall the natural persons holding voting rights in an audit firm satisfy also the conditions imposed by Articles 4 and 6 to 12 of the Audit Directive, including the additional specific requirements of Articles 7(2), Article 8(3), the second subparagraph of Article 10(1) and the fourth subparagraph of Article 14(2) of the Audit Directive, even if the audit firm does not plan to provide assurance of sustainability reporting? What about the requirements for the natural persons who compose the administrative or management body of the audit firm? Article 3 of the Audit Directive – regulating the approval of statutory auditors and audit firms – provides that competent authorities may approve statutory auditors and audit firms only if certain conditions are met. The conditions referred to in Article 3(3) of the Audit Directive for the approval of statutory auditors cross-refer to Articles 4 and 6 to 10 of the Audit Directive, while the conditions referred to in Article 3(4) of the Audit Directive for the approval of audit firms cross-refer to Articles 4 and 6 to 12 of the Audit Directive. The wording of Article 4 of the Audit Directive covering good repute is broad enough to also apply to the assurance of sustainability reporting, while Articles 6 to 12 of the Audit Directive have been amended in order to explicitly apply to the assurance of sustainability reporting. Where a statutory auditor or audit firm wishes to be approved to provide assurance on sustainability reporting it will have to comply with all the relevant requirements in national law transposing the Audit Directive as regards the assurance of sustainability reporting, including those referred to in Article 3(4) of the Audit Directive. Compliance with requirements for the assurance of sustainability reporting is not mandatory for the approval under Article 3 of the Audit Directive of a statutory auditor or audit firm that does not provide assurance on sustainability reporting. 54) What are the approval requirements for sustainability assurance for statutory auditors approved before 1 January 2024 or that on 1 January 2024 were undergoing the approval process? For statutory auditors to be able to provide assurance of sustainability reporting they need to be approved and then comply with the additional requirements for sustainability. More specifically, based on Article 14a third subparagraph of the Audit Directive, the statutory auditors approved before 1 January 2026 – that were either approved before 1 January 2024 or that on 1 January 2024 were undergoing the approval process – that want to carry out also sustainability assurance, do not have to comply with Articles 7(2), 8(3), 10(1) 2nd subparagraph, and 14(2) 4th subparagraph of the Accounting Directive but still need to acquire the necessary knowledge through continuing education. 55) Can statutory auditors approved before 1 January 2026 apply indefinitely to be approved for sustainability assurance? Which requirements would apply for their approval? Under Article 14a third subparagraph of the Audit Directive, statutory auditors approved before 1 January 2026 who wish to carry out the assurance of sustainability reporting must acquire the necessary knowledge of sustainability reporting and the assurance of sustainability reporting, including of the subjects listed in Article 8(3) of the Audit Directive, via the continuing education referred to in Article 13 of the Audit Directive. Article 14a of the Audit Directive does not require additional examinations nor the acquisition of this knowledge to be done prior to obtaining the approval. The Audit Directive does not set out time limits for statutory auditors approved before 1 January 2026 to apply for carrying out sustainability assurance in compliance with these requirements. 56) In order for the statutory auditor or the trainee to also be approved to carry out the assurance of sustainability reporting, will the three-year practical training required under Article 10(1) first subparagraph of the Audit Directive need to include eight months of practical training in the field of sustainability assurance or will it have to be extended by another eight months? For the statutory auditor or the trainee to also be approved to carry out the assurance of sustainability reporting, the three-year practical training required under Article 10(1) first subparagraph of the Audit Directive will need to include eight months of practical training on the assurance of annual and consolidated sustainability reporting or on other sustainability-related services. The statutory auditor or trainee that has already completed the three-year practical training at the moment of applying for the approval to carry out assurance of sustainability reporting will have to perform an additional period of eight months of practical training on the assurance of annual and consolidated sustainability reporting or on other sustainability-related services. Article 14a, first and second subparagraphs of the Audit Directive exempts from this requirement the following categories of professionals: statutory auditors that are approved or recognised to carry out statutory audits before 1 January 2024 and persons that on 1 January 2024 are undergoing the approval process provided they complete that process by 1 January 2026. Pursuant to Article 14a third subparagraph of the Audit Directive, these professionals will still need to acquire the necessary knowledge through continuing education. 57) Under Article 10(1) second subparagraph of the Audit Directive, in order for the statutory auditor or the trainee to also be approved to carry out the assurance of sustainability reporting, at least eight months of the practical training referred to in the first subparagraph shall be on the assurance of annual and consolidated sustainability reporting or on other sustainability-related services. What is the correct interpretation of ‘other sustainability-related services’? ‘ Other sustainability-related services ’ should be understood as services related to sustainability reporting other than assurance. They could encompass, for example, consulting services on sustainability reports and the preparation of sustainability reports. 58) Can a statutory auditor approved to carry out statutory audits before 1 January 2024 in Member State A be approved to carry out the assurance of sustainability reporting in Member State B, even though that statutory auditor is not approved to carry out the assurance of sustainability reporting in Member State A? For the registration in Member State B, does this auditor need to be registered as statutory auditor and as assurance service provider or can this auditor only be registered as assurance service provider? For the registration in Member State B, the statutory auditor needs to be approved as a statutory auditor in that Member State (see Articles 3(1) and 14(1) of the Audit Directive). If that is the case and the auditor wishes to be registered as an assurance services provider, the transitional regime under Article 14a of the Audit Directive will apply in Member State B (see also FAQ 54). Approval as an assurance services provider in Member State A is not required. 59) A statutory auditor approved to carry out statutory audits after 1 January 2024 in Member State A, and who is also approved to carry out the assurance of sustainability reporting in that Member State, wants to be registered in Member State B. In this case does the statutory auditor need to be registered in Member State B as auditor and as assurance service provider or could this statutory auditor be registered only as assurance service provider? The statutory auditor should be registered as a statutory auditor and as assurance services provider in Member State B. The only entities that can be registered as assurance services providers without being auditors are the Independent Assurance Services Providers (IASPs).

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07