C3C4C5C6Part 42Statutory Auditors
Pt. 42: functions transferred in part (6.4.2008 in accordance with art. 1 of the amending S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)
Pt. 42 applied (with modifications) (15.8.2008) by The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 (S.I. 2008/1950), reg. 6(5)
Pt. 42: functions transferred in part (2.7.2012) by The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 (S.I. 2012/1741), arts. 1(2), 7, 8, 9 (with art. 16)
Chapter 2Individuals and firms
Independence requirement
C1I1C21214Independence requirement
1
A person may not act as statutory auditor of an audited person if one or more of subsections (2), (3) and (4) apply to him.
2
This subsection applies if the person is—
a
an officer or employee of the audited person, or
b
a partner or employee of such a person, or a partnership of which such a person is a partner.
3
This subsection applies if the person is—
a
an officer or employee of an associated undertaking of the audited person, or
b
a partner or employee of such a person, or a partnership of which such a person is a partner.
4
This subsection applies if there exists, between—
a
the person or an associate of his, and
b
the audited person or an associated undertaking of the audited person,
a connection of any such description as may be specified by regulations made by the Secretary of State.
5
An auditor of an audited person is not to be regarded as an officer or employee of the person for the purposes of subsections (2) and (3).
6
In this section “associated undertaking”, in relation to an audited person, means—
a
a parent undertaking or subsidiary undertaking of the audited person, or
b
a subsidiary undertaking of a parent undertaking of the audited person.
7
Regulations under subsection (4) are subject to negative resolution procedure.
Pt. 42 modified (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 43