Part 3Audit

Amendments to the Statutory Auditors and Third Country Auditors Regulations 2016

regulation 14 + 14.—(1) The Statutory Auditors and Third Country Auditors Regulations 2016(1) are amended as follows.

(2) In regulation 2 insert the following definition in the appropriate place—

““audit committee” has the same meaning as in Chapter 2 of Part 16 of the Act;”.

(3) In regulation 11(2)—

regulation 14 3 a + (a)at paragraph (a) omit “which”;

regulation 14 3 b + (b)at sub-paragraph (a)(i)—

regulation 14 3 b i + (i)for “is” substitute “which is”;

regulation 14 3 b ii + (ii)for “in an equivalent third country, or” substitute “or formed under the law of an equivalent third country or a transitional third country”;

regulation 14 3 c + (c)after sub-paragraph (a)(i) insert—

“(ia)where the performance of any third country audit functions in respect of the audited entity is subject to the systems of public oversight, quality assurance and investigations and sanctions of the third country competent authority in that equivalent third country or transitional third country; and”;

regulation 14 3 d + (d)omit sub-paragraph (a)(ii);

regulation 14 3 e + (e)at paragraph (b) after “by a” insert “person who is eligible for appointment as a”.

(4) In regulation 11(8) after “body corporate” insert “incorporated or formed under the law of a third country”.

(5) In regulation 13A—

regulation 14 5 a + (a)from the opening words omit “within the standards on professional ethics that it determines in accordance with Schedule 1”;

regulation 14 5 b + (b)in the opening words, for “points (a) (i), (a) (iv) to (a) (vii) and (f)” substitute “points (a) to (k)”;

regulation 14 5 c + (c)omit paragraph (a);

regulation 14 5 d + (d)before paragraph (b) insert —

“(zb)the competent authority is satisfied that exceptional circumstances exist;”;

regulation 14 5 e + (e)omit the “and” after sub-paragraph (b);

regulation 14 5 f + (f)after sub-paragraph (c) for “.” substitute “;” and insert—

“(d)subject to paragraph (e), the period for which the competent authority may allow the provision of services to take place relates only to the period between the beginning of the financial year of the accounts to be audited and the issuing of the audit report; and

(e)in respect of any allowance made by the competent authority in relation to point (e) of the second sub-paragraph of Article 5(1) of the Audit Regulation, the period in which the competent authority may allow the provision of services to take place is the period between the beginning of the financial year of the accounts to be audited and the issuing of the audit report as well as the preceding financial year before that period.”.

(6) In regulation 21—

regulation 14 6 a + (a)at paragraph (2)(a) for “50,000 euros” substitute “£35,000”,

regulation 14 6 b + (b)at paragraph (2)(b) for “100,000 euros” substitute “£70,000”,

regulation 14 6 c + (c)at paragraph (3) for “euros” in both places that word occurs substitute “pounds Sterling”.