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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 9780111146866

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.

Draft Order laid before Parliament under paragraph 2 of Schedule 2 to the European Communities Act 1972 and section 1290 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 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) and paragraph 11(2) of Schedule 13 to of the Companies Act 2006f3.

In accordance with paragraph 2 of Schedule 2 to the European Communities Act 1972 and section 1290 of the Companies Act 2006, 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

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. 23Review
  28. Signature
  29. Schedule 1: Requirements for professional ethics, independence, objectivity, confidentiality, auditing standards and audit reporting
  30. 1Paragraph 1
  31. 2Paragraph 2
  32. 3Paragraph 3
  33. 4Paragraph 4
  34. 5Paragraph 5
  35. 6Paragraph 6
  36. 7Paragraph 7
  37. 8Paragraph 8
  38. 9Paragraph 9
  39. 10Paragraph 10
  40. 11Paragraph 11
  41. 12Paragraph 12
  42. 13Paragraph 13
  43. 14Paragraph 14
  44. 15Paragraph 15
  45. 16Paragraph 16
  46. Schedule 2: Investigation Powers
  47. 1Paragraph 1
  48. 2Paragraph 2
  49. 3Paragraph 3
  50. 4Paragraph 4
  51. 5Paragraph 5
  52. Schedule 3: Amendments to the Companies Act 2006
  53. Part 1: Introductory
  54. 1Paragraph 1
  55. 2Paragraph 2
  56. Part 2: Amendment to Part 15 of the Companies Act 2006
  57. 3Paragraph 3
  58. Part 3: Amendments to Chapters 2 to 4 of Part 16 of the Companies Act 2006
  59. 4Paragraph 4
  60. 5Paragraph 5
  61. 6Paragraph 6
  62. 7Paragraph 7
  63. 8Paragraph 8
  64. 9Paragraph 9
  65. 10Paragraph 10
  66. 11Paragraph 11
  67. 12Paragraph 12
  68. 13Paragraph 13
  69. 14Paragraph 14
  70. 15Paragraph 15
  71. 16Paragraph 16
  72. 17Paragraph 17
  73. 18Paragraph 18
  74. 19Paragraph 19
  75. 20Paragraph 20
  76. 21Paragraph 21
  77. 22Paragraph 22
  78. 23Paragraph 23
  79. 24Paragraph 24
  80. 25Paragraph 25
  81. 26Paragraph 26
  82. Part 4: Amendments to Part 38 of the Companies Act 2006
  83. 27Paragraph 27
  84. 28Paragraph 28
  85. Part 5: Amendments to Part 42 of the Companies Act 2006
  86. 29Paragraph 29
  87. 30Paragraph 30
  88. 31Paragraph 31
  89. 32Paragraph 32
  90. 33Paragraph 33
  91. 34Paragraph 34
  92. 35Paragraph 35
  93. 36Paragraph 36
  94. 37Paragraph 37
  95. 38Paragraph 38
  96. 39Paragraph 39
  97. 40Paragraph 40
  98. 41Paragraph 41
  99. 42Paragraph 42
  100. 43Paragraph 43
  101. 44Paragraph 44
  102. 45Paragraph 45
  103. 46Paragraph 46
  104. 47Paragraph 47
  105. 48Paragraph 48
  106. 49Paragraph 49
  107. 50Paragraph 50
  108. 51Paragraph 51
  109. 52Paragraph 52
  110. 53Paragraph 53
  111. 54Paragraph 54
  112. 55Paragraph 55
  113. 56Paragraph 56
  114. 57Paragraph 57
  115. 58Paragraph 58
  116. 59Paragraph 59
  117. 60Paragraph 60
  118. 61Paragraph 61
  119. 62Paragraph 62
  120. 63Paragraph 63
  121. 64Paragraph 64
  122. 65Paragraph 65
  123. 66Paragraph 66
  124. 67Paragraph 67
  125. 68Paragraph 68
  126. 69Paragraph 69
  127. 70Paragraph 70
  128. 71Paragraph 71
  129. 72Paragraph 72
  130. 73Paragraph 73
  131. Schedule 4: Amendments to Part 8 of the Building Societies Act 1986
  132. Part 1: Introductory
  133. 1Paragraph 1
  134. Part 2: Amendments to Part 8 of the Building Societies Act 1986
  135. 2Paragraph 2
  136. 3Paragraph 3
  137. 4Paragraph 4
  138. 5Paragraph 5
  139. 6Paragraph 6
  140. 7Paragraph 7
  141. 8Paragraph 8
  142. Schedule 5: Amendments to other enactments
  143. 1Amendments to Part 1 of the Companies (Audit, Investigations and Community Enterprise) Act 2004
  144. 2Amendments to Schedule 5 to the Local Audit and Accountability Act 2014
  145. Explanatory note