SCHEDULE 3Amendments to the Companies Act 2006
PART 5Amendments to Part 42 of the Companies Act 2006
58
1
Paragraph 9 is amended as follows.
2
In sub-paragraph (1)(c) for “from any significant threats to it” substitute “
in accordance with the standards mentioned in sub-paragraph (3A)
”
.
3
In sub-paragraph (1)(d), for the words after “record” substitute “
the matters required to be recorded in accordance with those standards.
”
4
Omit sub-paragraph (1)(e).
5
After sub-paragraph (1) insert—
1A
The body must have adequate rules and practices designed to ensure that, except where the audited person is a public interest entity—
a
an individual who has been appointed as statutory auditor may not be appointed as a director or other officer of the audited person or be concerned in the management of the audited person during a period of not less than one year determined in standards set by the competent authority and commencing on the date on which the individual's appointment as a statutory auditor ended;
b
a key audit partner of a firm which has been appointed as statutory auditor may not be appointed as a director or other officer of the audited person or be concerned in the management of the audited person during a period of not less than one year to be determined in standards set by the competent authority and commencing on the date on which the firm's appointment as a statutory auditor ended.
6
Omit sub-paragraph (2).
7
In sub-paragraph (3), omit paragraphs (a) and (c) and the “and” at the end of paragraph (b).
8
After sub-paragraph (3) insert—
3A
The rules and practices mentioned in sub-paragraphs (1) and (3) must include provision requiring compliance with standards for the time being determined by the competent authority under the Statutory Auditors and Third Country Auditors Regulations 2016.
9
In sub-paragraph (4), for “sub-paragraph (3)(b) (confidentiality of information)” substitute “
sub-paragraphs (1A) and (3)(b)
”
.
10
After sub-paragraph (4) insert—
5
An auditor is not to be regarded as an officer of the audited person for the purposes of sub-paragraph (1A) (a) and (b).