Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC (Text with EEA relevance)

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Article 8U.K.Engagement quality control review

1.Before the reports referred to in Articles 10 and 11 are issued, an engagement quality control review (in this Article hereinafter referred to as: review) shall be performed to assess whether the statutory auditor or the key audit partner could reasonably have come to the opinion and conclusions expressed in the draft of these reports.

2.The review shall be performed by an engagement quality control reviewer (in this Article hereinafter referred to as: reviewer). The reviewer shall be [F1person who is eligible for appointment as a] a statutory auditor who is not involved in the performance of the statutory audit to which the review relates.

[F23.By way of derogation from paragraph 2, where—

(a)the statutory auditor is a firm and all the individuals who were able to sign audit reports on behalf of the firm were involved in carrying out the statutory audit, or

(b)the statutory auditor is an individual,

the statutory auditor must arrange for another person who is eligible for appointment as a statutory auditor to perform a review. The disclosure of documents or information to the independent reviewer for the purposes of this Article does not constitute a breach of the statutory auditor's duty of confidentiality. Documents or information disclosed to the reviewer for the purposes of this Article must be subject to that duty.]

4.When performing the review, the reviewer shall record at least the following:

(a)the oral and written information provided by the F3... key audit partner to support the significant judgements as well as the main findings of the audit procedures carried out and the conclusions drawn from those findings, whether or not at the request of the reviewer;

(b)the opinions of the F4... key audit partner, as expressed in the draft of the reports referred to in Articles 10 and 11;

5.The review shall at least assess the following elements:

(a)the independence of the statutory auditor F5... from the [F6audited person];

(b)the significant risks which are relevant to the statutory audit and which the F7... key audit partner has identified during the performance of the statutory audit and the measures that [F8the key audit partner] has taken to adequately manage those risks;

(c)the reasoning of the F9... key audit partner, in particular with regard to the level of materiality and the significant risks referred to in point (b);

(d)any request for advice to external experts and the implementation of such advice;

(e)the nature and scope of the corrected and uncorrected misstatements in the [F10accounts] that were identified during the carrying out of the audit;

(f)the subjects discussed with the audit committee and [F11, where applicable,] the [F12management body] of the [F13audited person];

(g)the subjects discussed with [F14regulatory authorities] and, where applicable, with other third parties;

(h)whether the documents and information selected from the file by the reviewer support the opinion of the F15... key audit partner as expressed in the draft of the reports referred to in Articles 10 and 11.

6.The reviewer shall discuss the results of the review with the F16... key audit partner. [F17Where the statutory auditor is a firm, it] shall establish procedures for determining the manner in which any disagreement between the key audit partner and the reviewer are to be resolved.

7.The statutory auditor F18... and the reviewer shall keep a record of the results of the review, together with the considerations underlying those results.

Textual Amendments

F1Words in Art. 8(2) inserted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(a); 2020 c. 1, Sch. 5 para. 1(1)

F2Art. 8(3) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(b); 2020 c. 1, Sch. 5 para. 1(1)

F3Words in Art. 8(4)(a) omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(c)(i); 2020 c. 1, Sch. 5 para. 1(1)

F4Words in Art. 8(4)(b) omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F5Words in Art. 8(5)(a) omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(i)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F6Words in Art. 8(5)(a) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(i)(bb); 2020 c. 1, Sch. 5 para. 1(1)

F7Words in Art. 8(5)(b) omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(ii)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F8Words in Art. 8(5)(b) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(ii)(bb); 2020 c. 1, Sch. 5 para. 1(1)

F9Words in Art. 8(5)(c) omitted (31.12.2020) by virtue of The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(iii); 2020 c. 1, Sch. 5 para. 1(1)

F10Word in Art. 8(5)(e) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(iv); 2020 c. 1, Sch. 5 para. 1(1)

F11Words in Art. 8(5)(f) inserted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 83(d)(v)(aa); 2020 c. 1, Sch. 5 para. 1(1)