Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to secure the validity of UK statutory audits across the EU after the UK leaves the EU.

The Government is currently preparing for the negotiation of an ambitious future economic partnership for the UK’s future trading relationship with the European Union. We are considering options for the UK’s future audit regulatory relationship with the EU including the equivalence and adequacy frameworks for mutual cooperation under the EU Audit Directive.

The European Union (Withdrawal) Bill will maintain the existing framework for the regulation of statutory audit immediately after the UK’s departure from the EU. The Department is preparing regulations to make necessary changes to address any inoperabilities or deficiencies. The Department for Business, Energy and Industrial Strategy, the Financial Reporting Council and the Financial Conduct Authority are also meeting with the accountancy institutes, audit firms and investor representatives to discuss the changes that will be needed as part of this process.