Paragraph 5 Professional integrity and independenceF1

(1)

The registration rules must include rules designed to secure that—

(a)

audits under this Act are conducted properly and with integrity, and

(b)

providers are not appointed as local auditors in circumstances in which they have an interest likely to conflict with the proper conduct of the audit.

(2)

The criteria and procedures in place under paragraph 2 must be designed to secure that a firm—

(a)

may be entered in the register only if the firm has in place adequate arrangements within sub-paragraph (3), and

(b)

is to be removed from the register as soon as possible after ceasing to have such arrangements.

(3)

The arrangements within this sub-paragraph are arrangements to prevent a person to whom sub-paragraph (4) applies from being able to exert any influence over the way in which an audit under this Act is conducted in circumstances in which that influence would be likely to affect the independence or integrity of the audit.

(4)

This sub-paragraph applies to—

(a)

any person who is not a member of the firm, and

(b)

any individual who is a member of the firm but does not meet the qualification requirement for the purposes of paragraph 4(1)(a).

Annotations

Textual amendments

F1: Schs. 1B-1D inserted (29.4.2026 for specified purposes) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(6), Sch. 35