{"id":136,"date":"2026-04-16T16:52:46","date_gmt":"2026-04-16T13:52:46","guid":{"rendered":"https:\/\/projects.snau.edu.ua\/eutrust\/?page_id=136"},"modified":"2026-04-16T16:52:46","modified_gmt":"2026-04-16T13:52:46","slug":"policy-brief-2","status":"publish","type":"page","link":"https:\/\/projects.snau.edu.ua\/eutrust\/platforma-znan\/policy-brief-2\/","title":{"rendered":"Policy Brief# 2"},"content":{"rendered":"\n

\ud83c\uddec\ud83c\udde7<\/strong> The Independence Problem: How the EU Limits What Auditors Can Sell<\/strong><\/p>\n\n\n\n

Policy Brief | Auditor Independence — Rotation & Non-Audit Services<\/em><\/p>\n\n\n\n

Here is a structural problem that regulators identified long before it became a scandal: an auditor paid millions in consulting fees by the same company it audits has a conflict of interest — whether it admits it or not. The EU closed this loophole in 2014. The rules are still in force. And they are binding.<\/p>\n\n\n\n

Rotation: The Ten-Year Limit<\/strong><\/p>\n\n\n\n

Under Regulation (EU) No 537\/2014, Public Interest Entities must change their statutory auditor after a maximum of ten continuous years<\/strong>. Member States may allow up to twenty years if a competitive tender is held at the ten-year mark.<\/p>\n\n\n\n

The reasoning is direct: long-term auditor-client relationships generate familiarity that undermines professional skepticism. An auditor who has worked with the same management team for fifteen years is less likely to challenge them. Rotation resets the relationship on a mandatory cycle — before loyalty replaces judgment.<\/p>\n\n\n\n

Non-Audit Services: A Hard Prohibition List<\/strong><\/p>\n\n\n\n

Article 5 of the Regulation prohibits a defined list of non-audit services (NAS) to PIE audit clients. The blacklist includes:<\/p>\n\n\n\n