PART 2The Competent Authority
General requirements of auditors4
1
A person appointed to conduct a statutory audit must conduct that audit in accordance with the relevant standards for the conduct of statutory audits.
2
The relevant standards are—
a
the standards of integrity, objectivity, professional competence, due care and professional scepticism as determined by the competent authority in accordance with Schedule 1;
b
the international auditing standards adopted by the European Commission in accordance with Article 26(3) of the Audit Directive (“Commission-adopted international standards”);
c
any auditing standards, procedures or requirements imposed by the competent authority in accordance with paragraph (3)(a);
d
auditing procedures or requirements imposed by the competent authority in accordance with paragraph (3)(b); and
e
the requirements of rules and practices of the recognised supervisory body of which the auditor is a member, provided that the rules and practices are rules and practices required by virtue of Part 2 of Schedule 10 to the Act.
3
The competent authority may—
a
impose auditing standards, procedures or requirements which do not cover the same subject-matter as Commission adopted international standards; or
b
impose auditing procedures or requirements which cover the same subject-matter as Commission-adopted international standards but are necessary—
i
to give effect to any relevant requirement relating to the scope of statutory audit; or
ii
to add to the credibility and quality of financial statements.
4
In this regulation “relevant requirement” has the same meaning as in regulation 5.