Article 7 IrregularitiesC1

United Kingdom

Without prejudice to F1relevant legislation, when a statutory auditor F2... carrying out the statutory audit of a public-interest entity suspects or has reasonable grounds to suspect that irregularities, including fraud with regard to the F3accounts of the F4audited person, may occur or have occurred, F5the statutory auditor shall inform the audited entity and invite it to investigate the matter and take appropriate measures to deal with such irregularities and to prevent any recurrence of such irregularities in the future.

Where the F6audited person does not investigate the matter, the statutory auditor F7... shall inform the authorities F8... responsible for investigating such irregularities.

The disclosure in good faith to those authorities, by the statutory auditor F9..., of any irregularities referred to in the first subparagraph shall not constitute a breach of any contractual or legal restriction on disclosure of information.

F10In this Article, “relevant legislation” means—

any rules made under section 340 of the Financial Services and Markets Act 2000;

the Financial Services and Markets Act 2000 (Communications by Auditors) Regulations 2001;

the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017;

sections 330(6), 330(7A), 333A and 342 of the Proceeds of Crime Act 2002;

sections 45 and 46 of the Criminal Finances Act 2017;

(f))

the Terrorism Act 2000.

Annotations

Textual amendments

F1: Words in Art. 7 substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(a)(i); 2020 c. 1, Sch. 5 para. 1(1)
F2: Words in Art. 7 omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F3: Word in Art. 7 substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(a)(iii); 2020 c. 1, Sch. 5 para. 1(1)
F4: Words in Art. 7 substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(a)(iv); 2020 c. 1, Sch. 5 para. 1(1)
F5: Words in Art. 7 substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(a)(v); 2020 c. 1, Sch. 5 para. 1(1)
F6: Words in Art. 7 substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F7: Words in Art. 7 omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F8: Words in Art. 7(2) omitted (11.5.2025) by virtue of The Companies (Directors' Remuneration and Audit) (Amendment) Regulations 2025 (S.I. 2025/439), regs. 1(2), 15(3)
F9: Words in Art. 7 omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(c); 2020 c. 1, Sch. 5 para. 1(1)
F10: Words in Art. 7 inserted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 82(d); 2020 c. 1, Sch. 5 para. 1(1)

Modifications

C1: Art. 7: power to amend conferred (31.12.2020) by S.I. 2016/649, reg. 4(3A) (as inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 68(f); 2020 c. 1, Sch. 5 para. 1(1))