The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019

100.  In Article 26 (quality assurance)—

(a) in paragraph 1—

(i) in point (a)—

(aa) omit “and audit firms”;

(bb) for “Article 32(5) of Directive 2006/43/EC” substitute “ regulation 3(1)(l) of the Statutory Auditors and Third Country Auditors Regulations 2016 ”;

(ii) in point (b), for “a reviewer” substitute “ an individual ”;

(iii) in point (c)—

(aa) for “a natural person” substitute “ an individual ”;

(bb) for “financial reporting” substitute “ accounting ”;

(b) in paragraph 2—

(i) in the first subparagraph, for “competent authorities designated under Article 20(1)” substitute “ competent authority ”;

(ii) in the second subparagraph—

(aa) for “statutory auditors and audit firms” substitute “ individuals and firms ”;

(bb) for point (a), substitute—

“(a) in the case of statutory auditors carrying out audits of public interest entities, [F1 other than those which,] but for being public interest entities, would qualify (or would if they were companies) as small or medium-sized under sections 382 and 383 or sections 465 and 467 of the Companies Act 2006, at least every three years; and”;

(c) in paragraph 4—

(i) omit “reviewed”;

(ii) for “and audit firms” substitute “ that are the subject of the inspection ”;

(d) in paragraph 5, in the first subparagraph—

(i) in point (a), for “financial reporting” substitute “ accounting ”;

(ii) in point (b), omit “or an audit firm”;

(iii) in point (c)—

(aa) omit “or an audit firm”;

(bb) omit “or of that audit firm”;

(cc) omit “or audit firm”;

(iv) in point (d), omit “and the audit firm”;

(e) in paragraph 5, in the second subparagraph—

(i) for “a competent authority” substitute “ the competent authority ”;

(ii) for “the competent authorities” substitute “ the competent authority ”;

(f) after paragraph 5, insert—

“(5A) In point (a) of the first subparagraph of paragraph (5), “relevant experience” means having experience of—

(a) statutory audit work;

(b) equivalent work, for the purposes of an appointment of a person to conduct inspections made prior to [F2 IP completion day], on the audit of accounts under the law of an EEA State, or part of an EEA State, or Gibraltar; or

(c) equivalent work, for the purposes of an appointment of a person to conduct inspections, on the audit of accounts under the law of—

(i) an equivalent third country, or part of an equivalent third country; or

(ii) a transitional third country, or part of a transitional third country.”;

(g) in paragraph 6—

(i) in point (a), omit “or of the audit firm”;

(ii) in point (c), omit “or an audit firm”;

(h) in paragraph 7, in the first subparagraph —

(i) in the opening words, omit “or the audit firm”;

(ii) in point (a)—

(aa) omit “or the audit firm”;

(bb) for “those set out in Chapter IV of Directive 2006/43/EC” substitute “ the relevant standards listed in regulation 4(2) of the Statutory Auditors and Third Country Auditors Regulations 2016 ”;

(cc) omit “, as well as relevant laws” to the end;

(iii) in point (b), for “Article 13 of Directive 2006/43/EC” substitute “ paragraph 11 of Schedule 10 to the Companies Act 2006 ”;

(i) in paragraph 7, in the third subparagraph—

(i) for “Competent authorities” substitute “ The competent authority ”;

(ii) omit “and audit firms”;

(j) in paragraph 7, in the fourth subparagraph, for “competent authorities” substitute “ the competent authority ”;

(k) in paragraph 8—

(i) in the first subparagraph, omit “or audit firm”;

(ii) in the second subparagraph—

(aa) omit “or audit firm”;

(bb) omit “or of the audit firm”.

Textual Amendments

F1 Words in reg. 100(b)(ii)(bb) substituted (31.12.2020 immediately before IP completion day) by The Statutory Auditors, Third Country Auditors and International Accounting Standards (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/1392), regs. 1(2), 8; 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in reg. 100(f) substituted (31.12.2020 immediately before IP completion day) by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 16

Commencement Information

I1 Reg. 100 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 2