The Audit Firms Supervision Act introduces public oversight by the Netherlands Authority for the Financial Markets (AFM) on audit entities that provide audit reports that are relevant to the Dutch capital markets. Since 1 October 2006, audit firms need to have a licence from the AFM in order to perform statutory audits in the Netherlands.
From 28 June 2008, the public oversight will be extended to third-country audit entities (i.e., audit entities located outside the European Union and the European Economic Area) that provide audit reports concerning the annual or consolidated accounts of companies incorporated outside the European Union and the European Economics Area whose transferable securities are admitted to trading on the regulated market of Euronext Amsterdam N.V. in the Netherlands. Furthermore, the Audit Firms Supervision Act sets rules concerning the quality of audit entities and auditors. The primary goal of the Act is to help restore confidence in the work of auditors.