FAQ concerning the EU Regulation No 537/2014 relating to the appointment of statutory auditor or audit firms by public-interest entities is a CSSF FAQ, published 24 March 2021.
\nRelevant for: Public Oversight of the Audit Profession.
\nKeywords: Public-interest entities.
\nFrequently Asked Questions concerning the EU Regulation No 537/2014 (the “Regulation”) relating to the appointment of statutory auditor or audit firms by public-interest entities
\nFREQUENTLY ASKED QUESTIONS CONCERNING THE EU REGULATION NO 537/2014 (THE “REGULATION”) RELATING TO THE APPOINTMENT OF STATUTORY AUDITOR OR AUDIT FIRMS BY PUBLIC-INTEREST ENTITIES Version 1 - 24 March 2021
\nFrequently Asked Questions concerning the EU Regulation No 537/2014 (the “Regulation”) relating to the appointment of statutory auditor or audit firms by public-interest entities This FAQ issued on 24 March 2021 is based on the CEAOB guidelines (CEAOB 2021-006) adopted on 16 March 2021.
\nTABLE OF CONTENTS 1. Preliminary remarks 3 2. Definitions 3 Article 16 of the Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities 3 Article 17 of the Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities 6 Question 1: When do PIEs have to perform a formal selection procedure according to Article 16 (3) of the Regulation? 8 Question 2: Is there an exception to the obligation to perform a formal selection procedure according to Article 16 of the Regulation? 9 Question 3: What are the differences between Article 16 procedures and “public” tender procedures according to Article 17 (4) (a) of the Regulation? 10 Question 4: What could be considered as an adequate and fair timeline when carrying out the selection process? 11 Question 5: Are there specific requirements for entities that are subject to EU rules on public procurement have to take into account in applying Article 16 of the Regulation? 12 Question 6: Are there additional requirements or specificities that multi-PIE groups have to take into account? 12 Question 7: Does the Regulation allow a preselection for the tender process and which criteria might be adequate? 13 Question 8: Which requirements apply to the tender documents of the audited entity? 13 Question 9: Which requirements apply to the recommendation of the audit committee to the administrative or supervisory body? 15 Question 10: What format should the report take on the conclusions of the selection procedure? 16 Question 11: How can the audited entity be able to demonstrate to the competent authority that the selection procedure was conducted in a fair manner? 16 Question 12: How to design and what to include in the proposal to the general meeting of shareholders or members of the audited entity for the appointment of the auditor? 17 Question 13: What are the legal consequences of non-compliance with Article 16 of the Regulation for the PIE and the auditor? 17
\nFREQUENTLY ASKED QUESTIONS CONCERNING THE EU REGULATION NO 537/2014 (THE “REGULATION”) RELATING TO THE APPOINTMENT OF STATUTORY AUDITOR OR AUDIT FIRMS BY PUBLIC-INTEREST ENTITIES Version 1 - 24 March 2021
\nFrequently Asked Questions concerning the EU Regulation No 537/2014 (the “Regulation”) relating to the appointment of statutory auditor or audit firms by public-interest entities 1.
\nPreliminary remarks According to Article 31 of the Luxembourg law of 23 July 2016 relating to the audit profession (hereinafter “Lux Law”) the statutory auditor or audit firm (hereinafter auditor) shall be appointed by the general meeting or shareholders or members of the audited entity. Article 16 (2)-(5) of the Regulation (EU) No. 537/2014 (hereinafter “Regulation”) contains provisions regarding the appointment procedure of auditors by public-interest entities (hereinafter PIEs). This document is intended for auditors, audit committees, oversight bodies, professional bodies, PIEs, and other stakeholders and includes the guidelines adopted by the CEAOB (https://ec.europa.eu/info/ceaob) on the matter of the appointment of auditors by PIEs.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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