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In line with European Commission (EC) Regulation No. 1606/2002, listed companies in Finland are required to use International Financial Reporting Standards (IFRSs) in their consolidated accounts. The provisions of Regulation No. 1606/2002 led to an amendment to the Accounting Act which came into force at the end of 2004, making the application of IFRSs mandatory in consolidated accounts of all publicly listed companies in Finland. The 2006 EC report on the implementation of Regulation No. 1606/2002 points out that Finland permits IFRSs in the annual accounts for listed companies and in the annual and consolidated accounts for all other companies. Companies that choose not to apply IFRSs follow national regulations and adhere to an accounting framework governed by the Accounting Act and the Accounting Ordinance which, according to a 2002 KPMG report, differ from IFRSs.

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the Council came into force, requiring all statutory audits of annual and consolidated accounts to be carried out on the basis of International Standards on Auditing (ISAs) as adopted by the European Commission (EC). European Union (EU) member states shall adopt and publish the provisions necessary to comply with this Directive before June 29, 2008. Member states may impose additional requirements relating to the statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Finland is an EU member and, as such, adheres to the EC regulations. Auditing practices in Finland are governed by the Auditing Act. In July 2007, a new Auditing Act was adopted in Finland which complies with Directive 2006/43/EC, and detailed provisions on the enforcement of the Auditing Act were laid out in the Auditing Ordinance that came into effect the same year. The Finnish Institute of Authorized Public Accountants (KHT) issues generally accepted auditing standards (tilintarkastusstandardit) which, according to the 2006 KHT self-assessment, are based on ISAs, but with modifications that reflect the local legal environment.