# Companies Act 2006, Section 1242: Duties of registered third country auditors

Extent: E+W+S+N.I.

(1) A registered third country auditor who audits the accounts of a UK-traded third country company must participate in—
(a) arrangements within paragraph 1 of Schedule 12 (arrangements for independent monitoring of audits . . . ), and
(b) arrangements within paragraph 2 of that Schedule (arrangements for independent investigation for disciplinary purposes ...).
(2) A registered third country auditor must—
(a) take such steps as may be reasonably required of it to enable its performance of audits of accounts of UK-traded third country companies to be monitored by means of inspections carried out under the arrangements mentioned in subsection (1)(a), and
(b) comply with any decision as to disciplinary action to be taken against it made under the arrangements mentioned in subsection (1)(b).
(3) Schedule 12 makes further provision with respect to the arrangements in which registered third country auditors are required to participate.
(4) The Secretary of State may direct in writing that subsections (1) to (3) are not to apply, in whole or in part, in relation to
(a) a particular registered third country auditor or class of registered third country auditors.
(b) audits of the accounts of a particular UK-traded third country company or class of UK-traded third country companies;
(c) audits by a particular registered third country auditor or class of registered third country auditors of the accounts of a particular UK-traded third country company or class of UK-traded third country companies.

---
Source: https://www.legislation.gov.uk/ukpga/2006/46/section/1242 (the official version)
Page: https://openlegislation.uk/companies-act-2006/section-1242
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.