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What information should a transparency report contain?

A transparency report should normally contain the information as referred to in Article 40(1) of the Directive 2006/43/EC:

  1. A description of the legal structure and ownership of the third-country audit entity;
  2. Where the third-country audit entity belongs to a network, a description of the network and the legal and structural arrangements in the network;
  3. A description of the governance structure of the third-country audit entity;
  4. A description of the internal quality control system of the third-country audit entity and a statement by the administrative or management body on the effectiveness of its functioning;
  5. An indication of when the last quality assurance review (see FAQ no. 20) took place;
  6. A list of public-interest entities for which the third-country audit entity has carried out audits  during the preceding financial year. In this context a public-interest entity is considered a company listed under Item 9.0 of Form B;
  7. A statement concerning the third-country audit entity’s independence practices which also confirms that an internal review of independence compliance has been conducted;
  8. A statement on the policy followed by the third-country audit entity concerning the continuing education of third-county auditors referred to in Article 13 of Directive 2006/43/EC;
  9. Financial information showing the importance of the third-country audit entity, such as the total turnover divided into fees from the audit of annual and consolidated accounts, and fees charged for other assurance services, tax advisory services and other non-audit services;
  10. Information concerning the basis for the partners’ remuneration.

The transparency report shall be signed by the third-country auditor or third-country audit entity, as the case may be. This can be done, for example, by means of an electronic signature as defined in Article 2(1) of Directive 1999/93/EC.