Regulation 106 Amendment of the Statutory Auditors and Third Country Auditors Regulations 2016

in paragraph (2)(b), for “paragraph (5)” substitute “paragraphs (5), (5A) and (5B)”;

after paragraph (5), insert—

“(5A)

Any delegation under paragraph (2) of the competent authority’s responsibilities under sub-paragraphs (k), (l) or (m) of paragraph (1) must not prejudice the competent authority’s ability to initiate and conduct an inspection or investigation of audit work by a statutory auditor itself, where necessary, and to take appropriate action.

(5B)

In determining the delegation of tasks, the competent authority must ensure that conflicts of interest are avoided.”;

after paragraph (13), insert—

“(14)

The members of the management body of the competent authority must be individuals who—

(a)

are knowledgeable in the areas relevant to statutory audit;

(b)

are selected in accordance with an independent and transparent nomination procedure;

(c)

during their period in office are non-practitioners, and in the three years preceding their appointment were non-practitioners.

(15)

In paragraph (14), a “non-practitioner” is a person who is not—

(a)

carrying out statutory audit work;

(b)

a member of the ownership or management body of a firm that is eligible for appointment as a statutory auditor;

(c)

employed by or otherwise associated with a firm that is eligible for appointment as a statutory auditor.”.