French audit update 2025: Focus on sustainability and digitalisation

The most critical development is the implementation of the Corporate Sustainability Reporting Directive (CSRD). This mandates the audit (assurance) of sustainability information, transforming the scope of the auditor’s mission. The H2A has made supervision of these new sustainability assurance missions a central pillar of its 2025 control program, requiring auditors to demonstrate competence and independence in this complex, evolving domain. The profession, guided by the CNCC, is actively issuing standards and training to manage the integration of financial and non-financial data auditing under the new DDADUE Law.

The DDADUE Law was adopted on 30 April 2025, with most provisions entering into force on 03 May 2025, and certain key measures taking effect from 11 October 2025. The law has various provisions to adapt French law to European Union law, aiming to align French legislation with several recent EU directives.

Simultaneously, the core financial audit is undergoing major changes:

Risk standards revision: Auditors are implementing the revised NEP 315 and 330 standards (NEP stands for Normes d'Exercice Professionnel, or Professional Auditing Standards in English). These revised standards emphasise a more rigorous, risk-based approach, especially concerning IT and internal controls. The CNCC provides extensive support to ensure consistent application.

Financial statement modernisation: The application of the Autorité des Normes Comptables (French Accounting Standards Authority)’s (ANC) Regulation N°2022-06 is simplifying financial statement presentation for many French entities, requiring auditors to adapt their verification procedures and reporting accordingly.

Digitalisation: The AMF maintains a strong focus on European Single Electronic Format (ESEF) compliance for listed companies, ensuring the integrity and proper tagging (XBRL/iXBRL) of digital financial reports. Furthermore, the upcoming shift to mandatory e-invoicing is prompting the CNCC to guide auditors on assessing the reliability of these new, dematerialised transaction cycles.

Finally, regulatory vigilance remains high. The H2A continues its oversight of audit quality, professional ethics, and independence rules. The AMF is focused on clarity in auditor-issuer relations, particularly regarding the communication of going concern uncertainties. Through continuous guidance and adaptation, the French audit profession is strategically positioning itself to be a key pillar in the market’s transition towards increased transparency, especially regarding non-financial performance.

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Carole Hong Tran is a Partner with FIDAG, a French Chartered Accountant, and an ACCA member, with considerable expertise in statutory audit and due diligence operations.