Entry into force of the law concerning the audit profession and CSSF circular 10/439

On 18 February 2010, the law relating to the audit profession (the “Audit Law”) implementing the Directive 2006/43/EC of 17 May 2006 on statutory audits of annual accounts and consolidated accounts has entered into force in the Grand Duchy of Luxembourg.
The main innovations of the Audit Law are:
-       The introduction of a distinction between “approved” independent auditors and “unapproved” independent auditors. The latter are not allowed to proceed to activities reserved by law to the approved independent auditors and therefore statutory audits.
-       The registration of “approved” independent auditors with the Luxembourg Supervisory Commission on the Financial Sector (Commission de Surveillance du Secteur Financier).
-       The set-up of an audit committee for public interest entities subject to derogation.