Part 3Audit

Amendments to the Statutory Auditors and Third Country Auditors Regulations 2016

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)—

(a)at paragraph (a) omit “which”;

(b)at sub-paragraph (a)(i)—

(i)for “is” substitute “which is”;

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

(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”;

(d)omit sub-paragraph (a)(ii);

(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—

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

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

(c)omit paragraph (a);

(d)before paragraph (b) insert —

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

(e)omit the “and” after sub-paragraph (b);

(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—

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

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

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