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The objective of this paper is to provide an overview of the selected provisions of the Regulation
(EU) No 537/2014, more specifically about the extended audit report, the additional report to
audit committee and the far-reaching prohibition of NAS provided by auditors. The criteria for
evaluation of these provisions are the final adoption of the reform by the German legislator and
their impact on the quality of audit.
On the 17th of March 2016 the German Bundestag adopted the AReG and on the 3rd of
December 2015, the APAReG. These acts provided the transition of the directive into national
law and application of the derogations from the regulation. It caused much debate, as the
German legislator had to take a decision whether to exercise certain derogations, extend
particular provisions applicable explicitly for PIEs and make the applicable resolutions more
rigorous.
Applying the quantitative research based on the survey, findings on the deficiencies of the
German audit regulation before the reform were collected. Furthermore, the perception of audit
market participants on the matters influenced by the regulation, such as the informative function
of audit, the auditor’s independency and finally the audit quality were investigated. The last
approached concept was the overall impact of the regulation on the audit process in public
interest entities.
The findings showed that the sentiments of the practitioners are often divergent with the
viewpoints of the European regulator. The views of audit market participants seem to be
sceptical about the European legislator increasing the value and quality of audit by the means
of this reform.

audit --- audit reform --- audit report --- non-audit services --- regulation --- public interest entities --- german audit market --- Sciences économiques & de gestion > Comptabilité & audit