EU Statutory Audit Directive (Directive 2006/43/EC) A7-8: Examination of professional competence and the subjects of the theoretical test

What does A7-8 require?

The examination guarantees the theoretical knowledge needed for statutory audit and the ability to apply it, with at least a written part. The theoretical test covers accounting theory, legal requirements for annual and consolidated accounts, international accounting standards, financial analysis, cost and management accounting, risk management and internal control, auditing and professional skills, the law and standards of statutory audit, the adopted international auditing standards and professional ethics and independence, plus company law and governance, insolvency, tax, civil and commercial law, social security and employment law, IT, economics, mathematics and statistics and financial management so far as relevant. For the sustainability assurance approval it also covers the law and standards of sustainability reporting, sustainability analysis, due diligence processes and the assurance standards.