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The Statutory Auditors and Third Country Auditors Regulations 2016

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2016, ISBN 9780111147047

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This draft Statutory Instrument has been printed in substitution of the draft Statutory Instrument of the same title which was laid before Parliament and published on 12th May 2016 (ISBN 978-0-11-114686-6). It is being issued free of charge to all known recipients of that draft Statutory Instrument.

Draft Regulations laid before Parliament under paragraph 2 of Schedule 2 to the European Communities Act 1972, section 18A(8) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 and sections 1252(11), 1290 and 1292(4) of the Companies Act 2006, for approval by resolution of each House of Parliament.

Companies

Auditors

Made ***

Coming into force in accordance with regulation 1(1)

The Secretary of State is a Minister designatedf1 for the purposes of section 2(2) of the European Communities Act 1972f2 in relation to auditors and the audit of accounts.

The Secretary of State makes these Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972, section 18A(1) and (3) and (6) of the Companies (Audit, Investigations and Community Enterprise) Act 2004f3 and by sections 494(1), (2)(b) and (4)(a), 519A(5), 1241(2)(c), 1252(1) and (8) and 1292(1)(a), (2) and (4) of, and paragraph 11(2) of Schedule 13 to, the Companies Act 2006f4.

In accordance with paragraph 2 of Schedule 2 to the European Communities Act 1972, sections 1252(11), 1290 and 1292(4) of the Companies Act 2006 and section 18A(8) of the Companies (Audit, Investigations and Community Enterprise) Act 2004, a draft of these Regulations has been laid before Parliament and approved by resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

S.I. 2007/1679.

f2

1972 c. 68. Section 2(2) was amended by section 27 of the Legislation and Regulatory Reform Act 2006 (c. 51) and section 3 of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7).

f3

2004 c. 27. Section 18A was inserted by section 38 of the Small Business, Enterprise and Employment Act 2015 (c. 26): see section 18A(5) for the definition of “specified”.

f4

2006 c. 46.

Contents

  1. Part 1: Introduction
  2. 1Citation, commencement and application
  3. 2Interpretation
  4. Part 2: The Competent Authority
  5. 3The competent authority
  6. 4General requirements of auditors
  7. 5The competent authority: sanctioning powers
  8. 6Publication of sanctions and measures
  9. 7Enforcement of sanctions
  10. 8Recovery of financial penalties
  11. 9Monitoring of audits by the competent authority
  12. 10Investigation powers
  13. 11Performance, monitoring and enforcement of third country audit functions
  14. Part 3: Restrictions on choice of Auditor
  15. 12Contractual terms restricting choice of auditor
  16. Part 4: Miscellaneous
  17. 13Power to grant exemptions from the requirements of Article 4(2) of the Audit Regulation (limit on total fees charged for non-audit services)
  18. 14Amendment to the Partnerships (Accounts) Regulations 2008
  19. 15Amendments to the Companies Act 2006
  20. 16Amendments to the Building Societies Act 1986
  21. 17Amendments to other enactments
  22. 18Amendment of the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008
  23. 19Amendments to the Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012
  24. 20Amendment of the Statutory Auditors and Third Country Auditors Regulations 2013
  25. 21Exclusion of large debt securities issuer from definition of “UK-traded non-EEA company”
  26. 22Amendment of the Companies Act (Transfer of Audit Working Papers to Third Countries) Regulations 2010
  27. 23Amendment to the Companies (Bodies Concerned with Auditing Standards etc.) (Exemption from Liability) Regulations 2016
  28. 24Review
  29. Signature
  30. Schedule 1: Requirements for professional ethics, independence, objectivity, confidentiality, auditing standards and audit reporting
  31. 1Paragraph 1
  32. 2Paragraph 2
  33. 3Paragraph 3
  34. 4Paragraph 4
  35. 5Paragraph 5
  36. 6Paragraph 6
  37. 7Paragraph 7
  38. 8Paragraph 8
  39. 9Paragraph 9
  40. 10Paragraph 10
  41. 11Paragraph 11
  42. 12Paragraph 12
  43. 13Paragraph 13
  44. 14Paragraph 14
  45. 15Paragraph 15
  46. 16Paragraph 16
  47. Schedule 2: Investigation Powers
  48. 1Paragraph 1
  49. 2Paragraph 2
  50. 3Paragraph 3
  51. 4Paragraph 4
  52. 5Paragraph 5
  53. Schedule 3: Amendments to the Companies Act 2006
  54. Part 1: Introductory
  55. 1Paragraph 1
  56. 2Paragraph 2
  57. Part 2: Amendment to Part 15 of the Companies Act 2006
  58. 3Paragraph 3
  59. Part 3: Amendments to Chapters 2 to 4 of Part 16 of the Companies Act 2006
  60. 4Paragraph 4
  61. 5Paragraph 5
  62. 6Paragraph 6
  63. 7Paragraph 7
  64. 8Paragraph 8
  65. 9Paragraph 9
  66. 10Paragraph 10
  67. 11Paragraph 11
  68. 12Paragraph 12
  69. 13Paragraph 13
  70. 14Paragraph 14
  71. 15Paragraph 15
  72. 16Paragraph 16
  73. 17Paragraph 17
  74. 18Paragraph 18
  75. 19Paragraph 19
  76. 20Paragraph 20
  77. 21Paragraph 21
  78. 22Paragraph 22
  79. 23Paragraph 23
  80. 24Paragraph 24
  81. 25Paragraph 25
  82. 26Paragraph 26
  83. Part 4: Amendments to Part 38 of the Companies Act 2006
  84. 27Paragraph 27
  85. 28Paragraph 28
  86. Part 5: Amendments to Part 42 of the Companies Act 2006
  87. 29Paragraph 29
  88. 30Paragraph 30
  89. 31Paragraph 31
  90. 32Paragraph 32
  91. 33Paragraph 33
  92. 34Paragraph 34
  93. 35Paragraph 35
  94. 36Paragraph 36
  95. 37Paragraph 37
  96. 38Paragraph 38
  97. 39Paragraph 39
  98. 40Paragraph 40
  99. 41Paragraph 41
  100. 42Paragraph 42
  101. 43Paragraph 43
  102. 44Paragraph 44
  103. 45Paragraph 45
  104. 46Paragraph 46
  105. 47Paragraph 47
  106. 48Paragraph 48
  107. 49Paragraph 49
  108. 50Paragraph 50
  109. 51Paragraph 51
  110. 52Paragraph 52
  111. 53Paragraph 53
  112. 54Paragraph 54
  113. 55Paragraph 55
  114. 56Paragraph 56
  115. 57Paragraph 57
  116. 58Paragraph 58
  117. 59Paragraph 59
  118. 60Paragraph 60
  119. 61Paragraph 61
  120. 62Paragraph 62
  121. 63Paragraph 63
  122. 64Paragraph 64
  123. 65Paragraph 65
  124. 66Paragraph 66
  125. 67Paragraph 67
  126. 68Paragraph 68
  127. 69Paragraph 69
  128. 70Paragraph 70
  129. 71Paragraph 71
  130. 72Paragraph 72
  131. 73Paragraph 73
  132. Schedule 4: Amendments to Part 8 of the Building Societies Act 1986
  133. Part 1: Introductory
  134. 1Paragraph 1
  135. Part 2: Amendments to Part 8 of the Building Societies Act 1986
  136. 2Paragraph 2
  137. 3Paragraph 3
  138. 4Paragraph 4
  139. 5Paragraph 5
  140. 6Paragraph 6
  141. 7Paragraph 7
  142. 8Paragraph 8
  143. Schedule 5: Amendments to other enactments
  144. 1Amendments to Part 1 of the Companies (Audit, Investigations and Community Enterprise) Act 2004
  145. 2Amendments to Schedule 5 to the Local Audit and Accountability Act 2014
  146. Explanatory note