Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

The Statutory Auditors and Third Country Auditors Regulations 2007

Consolidated Text As Enacted Cited authorities 117 Cited in Amendments 34 Related
JurisdictionUK Non-devolved
CitationSI 2007/3494
Year2007
(1) These Regulations may be cited as the Statutory Auditors and Third Country Auditors Regulations 2007.(2) These Regulations, except for the provisions referred to in paragraph (3) , come into force on 6th April 2008.(3) Regulations 32, 33 and 40(2) (b) to (d) come into force on 29th June 2008.(1) Section 1261 of the Companies Act 2006 (minor definitions) is amended as follows.(2) At the appropriate places in subsection (1) , insert the following definitions—
      • “the Audit Directive” means Directive 2006/43/EC of the European Parliament and of the Council on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC, as amended at any time before 1st January 2009;
;
    “audit working papers” means any documents which—
    • (a) are or have been held by a statutory auditor or a third country auditor, and
    • (b) are related to the conduct of an audit conducted by that auditor;
;
    “EEA auditor” means an individual who is approved in accordance with the Audit Directive by an EEA competent authority to carry out audits of annual accounts or consolidated accounts required by Community law;
;
    “EEA competent authority” means a competent authority within the meaning of Article 2.10 of the Audit Directive of an EEA State other than the United Kingdom;
;
    “third country” means a country or territory that is not an EEA State or part of an EEA State;
;
    “third country auditor” means a person, other than a person eligible for appointment as a statutory auditor, who is eligible to conduct audits of the accounts of bodies corporate incorporated or formed under the law of a third country in accordance with the law of that country;
;
    “third country competent authority” means a body established in a third country exercising functions related to the regulation or oversight of auditors;
.(3) After subsection (2) insert—
  • “(2A) For the purposes of this Part, Gibraltar shall be treated as if it were an EEA State.
.For the purposes of this Part, Gibraltar shall be treated as if it were an EEA State.(1) Section 1262 of the Companies Act 2006 (index of defined expressions) is amended as follows.(2) At the appropriate places, insert the following entries in the Table—
    Audit Directivesection 1261(1)
;
    audit working paperssection 1261(1)
;
    EEA auditorsection 1261(1)
;
    EEA competent authoritysection 1261(1)
;
    third countrysection 1261(1)
;
    third country competent authoritysection 1261(1)
;
    UK-traded non-EEA companysection 1241(2)
.in the left-hand column, omit “third country audit and third country audit work”;in the right-hand column, for “section 1241(1) ” substitute “ section 1261(1) ”.(1) Section 1217 of the Companies Act 2006 (supervisory bodies) is amended as follows.(2) In subsection (1) omit the word “either” and the words from “or because” to the end.(3) After subsection (1) insert—
  • “(1A) The rules referred to in paragraphs 9(3) (b) (confidentiality of information) and 10C(3) (a) and (b) (bar on appointment as director or other officer) of Schedule 10 must also be binding on persons who—
  • (a) have sought appointment or acted as a statutory auditor, and
  • (b) have been members of the body at any time after the commencement of this Part.
have sought appointment or acted as a statutory auditor, andhave been members of the body at any time after the commencement of this Part.
  • after paragraph (d) insert
  • omit paragraph (e) ;
  • in paragraph (f) , for “overseas” substitute
    • (1) Section 1221 of the Companies Act 2006 (approval of overseas qualifications) is amended as follows.(2) In subsections (1) , (5) and (6) and the section heading, for “overseas” substitute “ third country ”.(3) In subsections (1) (a) and (b) , (3) (a) , (4) and (7) (a) , for “foreign country” substitute “ third country ”.(4) After subsection (1) insert—
    • “(1A) A declaration under subsection (1) (a) or (b) must be expressed to be subject to the requirement that any person to whom the declaration relates must pass an aptitude test in accordance with subsection (7A) , unless an aptitude test is not required (see subsection (7B) ) .
    .    A declaration under subsection (1) (a) or (b) must be expressed to be subject to the requirement that any person to whom the declaration relates must pass an aptitude test in accordance with subsection (7A) , unless an aptitude test is not required (see subsection (7B) ) .(5) After subsection (7) insert—
    • “(7A) An aptitude test required for the purposes of subsection (1A) —
    • (a) must test the person's knowledge of subjects—
    • (i) that are covered by a recognised professional qualification,
    • (ii) that are not covered by the professional qualification already held by the person, and
    • (iii) the knowledge of which is essential for the pursuit of the profession of statutory auditor;
    that are covered by a recognised professional qualification,that are not covered by the professional qualification already held by the person, andthe knowledge of which is essential for the pursuit of the profession of statutory auditor;may test the person's knowledge of rules of professional conduct;must not test the person's knowledge of any other matters.No aptitude test is required for the purposes of subsection (1A) if the subjects that are covered by a recognised professional qualification and the knowledge of which is essential for the pursuit of the profession of statutory auditor are covered by the professional qualification already held by the person.(6) Omit subsection (9) .(1) After section 1223 of the Companies Act 2006any withdrawal of a notifiable person's eligibility for appointment as a statutory auditor; andthe reasons for the withdrawal.a person has contravened the law of the United Kingdom, or any other EEA State or part of an EEA State, implementing the Audit Directive, andthe act or omission constituting that contravention took place on the territory of an EEA State other than the United Kingdom.who is also an EEA auditor; andin respect of whom the EEA competent authority is not the recognised supervisory body itself.(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1) After section 1224 of the Companies Act 2006 (Secretary of State's power to call for information) insert—
      (1224A) Restrictions on disclosure
    • “(1) This section applies to information (in whatever form) —
    • (a) relating to the private affairs of an individual, or
    • (b) relating to any particular business,
      • that is provided to a body to which this section applies in connection with the exercise of its functions under this Part or sections 522 to 524 (notification to appropriate audit authority...
    relating to the private affairs of an individual, orrelating to any particular business,

    Get this document and AI-powered insights with a free trial of vLex and Vincent AI

    Get Started for Free
    Navigation index

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

    • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

    • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

    • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

    • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

    vLex

    VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT