Regulatory Alerts2026-04-17
Amendment Act on the Audit Sector for Strengthening Quality and Governance in the Sector
The Dutch Authority for the Financial Markets (AFM) published this sector report to detail the operational impact of the Amendment Act on the Audit Sector, which introduces stricter governance rules for the largest audit firms, clarifies their shared responsibility for statutory audit quality, mandates periodic audit quality indicator reporting for OOB firms, creates a fallback appointment mechanism for public interest entities lacking an auditor, and permits reporting of audit deficiencies to the AFM by limiting confidentiality obligations. Expected to enter into force on 1 July 2026, the legislation amends the Audit Firms Supervision Act and the Act on the Audit Profession to systematically elevate sector quality and governance standards. Audit firm policy makers are directed to immediately assess these regulatory changes against their operations and implement necessary compliance measures.