The new Statutory Audit Directive (2006/43/EEC, also called the Eighth Company Law Directive) creates the mechanism for introduction of EEA-wide auditing standards and the framework for regulation and supervision of all aspects of the activities of auditors and audit firms. It is due to be implemented by June 2008. ICMA (and its predecessor IPMA) has been involved in negotiating the directive with the aim of ensuring that the wider interests of the international capital markets are taken into account.

Two issues arising under the Directive are highly topical already in the pre-implementation phase: the treatment of non-EEA audit firms and the possible introduction of a limitation of the audit firms' liability for statutory audits.

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