Number of assurance engagements related to sustainability reporting set to increase sharply as of 2025; this demands effective preparation

Market share of private equity parties among non-PIE audit firms set to rise from 11% in 2023 to 21% in 2024, AFM sees risks

The group comprises 7 private equity parties and 24 non-PIE audit firms. The AFM gives greater weight to the associated risks than the opportunities, since the pressure for returns and growth could compromise the quality of the statutory audit.

Non-PIE audit firms conduct the statutory audit for 57% of companies subject to the CSRD

The group of companies that must comply with the CSRD will increase in the coming years from around 95 in the 2024 financial year to over 3,000 as of 2025. Audit firms provide assurance on the sustainability reports of these companies. It is therefore crucial for them to make effective preparations in terms of capacity and expertise.

Number of fraud risks identified among certain statutory audits too low, yet positive trend is observable

One fraud risk is detected in 11% of statutory audits performed by non-PIE audit firms; which is 30% for statutory audits carried out by PIE audit firms. Since 2022, there has been a noticeable positive trend in the identification of more fraud risks among non-PIE audit firms.

State of the Auditing and Reporting Industry provides insights based on data requested from audit firms

Every year, audit firms that conduct statutory audits submit data to the AFM. This information is used to gain a clearer picture of developments and risks in the market. These insights support the AFM in prioritising its supervisory activities.

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