C3C4C5C6Part 42Statutory Auditors

Annotations:
Modifications etc. (not altering text)
C4

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S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)

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.