# Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC (Text with EEA relevance), Article 6: Preparation for the statutory audit and assessment of threats to independence

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

1. Before appointment as a statutory auditor for the statutory audit of a public- interest entity, a person who is eligible for appointment as a statutory auditor must assess and document, in addition to what is required by paragraph 8 of Schedule 1 to the Statutory Auditors and Third Country Auditors Regulations 2016, the following:
(a) whether the person who is eligible for appointment as a statutory auditor complies with the requirements of Articles 4 and 5 of this Regulation;
(b) whether the conditions of the provisions for the appointment of statutory auditors by public interest entities and Article 17(7) are complied with;
(c) without prejudice to the relevant legislation, the integrity of the members of the management body of the public-interest entity.
(1A.) In point (c) of paragraph 1, “relevant legislation” means—
a) the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;
b) sections 330(6), 330(7A), 333A and 342 of the Proceeds of Crime Act 2002;
c) sections 45 and 46 of the Criminal Finances Act 2017;
(d)) the Terrorism Act 2000.
(1B.) The reference to appointment as a statutory auditor for the statutory audit of a public interest entity in paragraph 1 means any appointment of the auditor by public interest entities and includes any deemed reappointment of the statutory auditor under section 487 of the Companies Act 2006.
2. A statutory auditor ... shall:
(a) confirm annually in writing to the audit committee that the statutory auditor, ... and, where the statutory auditor is a firm, any associated persons, conducting the statutory audit are independent from the audited person;
(b) discuss with the audit committee the threats to the statutory auditor's independence and the safeguards applied to mitigate those threats, as documented by the statutory auditor pursuant to paragraph 1.
(3.) In this Article, “associated persons” means—
a) partners if the firm is a partnership, general partners if the firm is a limited partnership, or members if the firm is a limited liability partnership;
b) members of the management body of the firm; or
c) individuals who are responsible for statutory audit work on behalf of the firm.

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Source: https://www.legislation.gov.uk/eur/2014/537/article/6 (the official version)
Page: https://openlegislation.uk/eu-regulation-2014-537/article-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.