SCHEDULES
SCHEDULE 10Recognised supervisory bodies
Part 2Requirements for recognition of a supervisory body
Holding of appropriate qualification
6
1
The body must have rules to the effect that a person is not eligible for appointment as a statutory auditor unless—
a
in the case of an individualF1 other than an EEA auditor, he holds an appropriate qualification,
F2aa
in the case of an individual who is an EEA auditor—
i
he holds an appropriate qualification,
ii
he has been authorised on or before 5 April 2008 to practise the profession of company auditor pursuant to the European Communities (Recognition of Professional Qualifications) (First General System) Regulations 2005 (S.I. 2005/18) and has fulfilled any requirements imposed pursuant to regulation 6 of those Regulations, or
iii
he has passed an aptitude test in accordance with sub-paragraph (2), unless an aptitude test is not required (see sub-paragraph (2A)).
b
in the case of a firm—
i
each individual responsible for statutory audit work on behalf of the firm is eligible for appointment as a statutory auditor, and
ii
the firm is controlled by qualified persons (see paragraph 7 below).
F32
The aptitude test—
a
must test the person's knowledge of subjects—
i
that are covered by a recognised professional qualification,
ii
that are not covered by the professional qualification already held by the person, and
iii
the knowledge of which is essential for the pursuit of the profession of statutory auditor;
b
may test the person's knowledge of rules of professional conduct;
c
must not test the person's knowledge of any other matters.
2A
No aptitude test is required if the subjects that are covered by a recognised professional qualification and the knowledge of which is essential for the pursuit of the profession of statutory auditor are covered by the professional qualification already held by the person.
3
A firm which has ceased to comply with the conditions mentioned in sub-paragraph (1)(b) may be permitted to remain eligible for appointment as a statutory auditor for a period of not more than three months.
7
1
This paragraph explains what is meant in paragraph 6(1)(b) by a firm being “controlled by qualified persons”.
2
In this paragraph references to a person being qualified are—
a
in relation to an individual, to his holding—
i
an appropriate qualification, or
3
A firm is to be treated as controlled by qualified persons if, and only if—
a
a majority of the members of the firm are qualified persons, and
b
where the firm's affairs are managed by a board of directors, committee or other management body, a majority of that body are qualified persons or, if the body consists of two persons only, at least one of them is a qualified person.
4
A majority of the members of a firm means—
a
where under the firm's constitution matters are decided upon by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters;
b
in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.
5
A majority of the members of the management body of a firm means—
a
where matters are decided at meetings of the management body by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters at such meetings;
b
in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.
6
Paragraphs 5 to 11 of Schedule 7 to this Act (rights to be taken into account and attribution of rights) apply for the purposes of this paragraph.