Paragraph 5 Cases in which an individual need not hold appropriate qualification: overseas casesF1

(1)

An individual falls within this paragraph if any of the following sub-paragraphs applies in respect of the individual.

(2)

This sub-paragraph applies where the individual—

(a)

is eligible to conduct audits of the accounts of bodies corporate incorporated or formed under the law of a third country in accordance with the law of that country, and

(b)

holds a professional qualification which covers all the subjects that—

(i)

are covered by an appropriate qualification, and

(ii)

are subjects of which knowledge is essential for the pursuit of the profession of local auditor.

(3)

This sub-paragraph applies where the individual is a specified state auditor who—

(a)

holds professional qualifications obtained in a specified state that are comparable to an appropriate qualification, and

(b)

has met a requirement to take an aptitude test or to complete an adaptation period, or to undertake both, imposed on the individual in accordance with Part 2 of the principal Recognition Regulations, if such a requirement is so imposed.

(4)

This sub-paragraph applies where the individual is an EEA auditor who, on or before 31 December 2020, was eligible for appointment as a local auditor by virtue of paragraph 6(1)(b) of Schedule 10 to the Companies Act 2006 as substituted by paragraph 28(3) of Schedule 5 to this Act.

(5)

This sub-paragraph applies where the individual has been authorised to act as a local auditor pursuant to the European Communities (Recognition of Professional Qualifications) Regulations 2007 (S.I. 2007/2781), and complies with the requirements of those Regulations that apply to a person acting as a local auditor.

(6)

In this paragraph—

“EEA auditor” has the meaning given by paragraph 20A(1) of Schedule 10 to the Companies Act 2006;
“the principal Recognition Regulations” means the Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023 (S.I. 2023/1286);
“specified state” means one of the states specified in Schedule 1 to the principal Recognition Regulations;
“specified state auditor” means an individual who is eligible to conduct audits of the accounts of bodies corporate that are incorporated or formed under the law of a specified state in accordance with the law of that state;
“third country” means a country or territory outside the United Kingdom.

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