The EU Audit Regulation (537/2014)

states: ‘In order to increase the confidence in . . . the statutory auditors and the audit firms carrying out the statutory audit of public-interest entities, it is important that the transparency reporting by statutory auditors and audit firms be increased’ (preamble, paragraph 17).

Required:

In relation to the statement above, discuss why it is necessary to increase the confidence in statutory audit and evaluate the extent to which audit firm transparency reporting will contribute to this.