Companies Act 2006

Changes over time for: Paragraph 6

Version Superseded: 01/12/2023

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Status:

Point in time view as at 31/12/2020.

Changes to legislation:

Companies Act 2006, Paragraph 6 is up to date with all changes known to be in force on or before 22 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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6(1)The body must have rules to the effect that a person is not eligible for appointment as a statutory auditor unless—U.K.

(a)in the case of an individual [F1other than [F2a third country auditor]], he holds an appropriate qualification,

[F3(aa) in the case of an individual who is [F4a third country auditor]—

(i)he holds an appropriate qualification,

(ii) he has been authorised on or before 5 April 2008 to practise the profession of company auditor pursuant to the European Communities (Recognition of Professional Qualifications) (First General System) Regulations 2005 ( S.I. 2005/18) and has fulfilled any requirements imposed pursuant to regulation 6 of those Regulations, or

[F5(iii)he meets the requirements of sub-paragraph (1A).]]

(b)in the case of a firm F6...—

(i)each individual responsible for statutory audit work on behalf of the firm is eligible for appointment as a statutory auditor, and

(ii)the firm is controlled by qualified persons (see paragraph 7 below).

F7(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(1A)The requirements of this sub-paragraph are that—

(a)the individual holds a professional qualification which covers all the subjects that are covered by a recognised professional qualification and that are subjects of which knowledge is essential for the pursuit of the profession of statutory auditor, or

(b) the individual is an EEA auditor who—

(i)on or before IP completion day, holds a professional qualification which does not cover all those subjects,

(ii)on or before IP completion day, has been approved by the body or is in the process of seeking approval from the body, and

(iii)has met whichever of the requirements of sub-paragraph (1B) is specified in the body's rules.]

[F9(1B) For the purposes of sub-paragraph (1A)(b)(iii), the body's rules must specify one of the following requirements—

(a)a requirement to pass an aptitude test in accordance with sub-paragraph (2),

(b)a requirement to complete an adaptation period in accordance with sub-paragraphs (2B) and (2C), or

(c)a requirement either to pass an aptitude test in accordance with sub-paragraph (2) or to complete an adaptation period in accordance with sub-paragraphs (2B) and (2C), according to the choice of the individual.]

[F10(2)The aptitude test—

(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;

(b)may test the person's knowledge of rules of professional conduct;

(c)must not test the person's knowledge of any other matters.

F11(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F12(2B)An adaptation period is a period, not exceeding three years, in which the individual (“the applicant”) pursues the profession of statutory auditor under the supervision of an individual who holds an appropriate qualification, subject to an assessment (“the ability assessment”) of the applicant’s ability to pursue the profession of statutory auditor in the United Kingdom.

(2C)Where the body’s rules specify [F13a requirement that may or must be met by completing an adaptation period]—

(a) the body must have rules governing the adaptation period and the ability assessment, having regard to the circumstances of each applicant and, in particular, to the fact that each applicant is a qualified professional in [F14an EEA State],

(b)the applicant may be required to undergo further training during the adaptation period,

(c)the applicant’s performance during the adaptation period must be assessed by the body, and

(d)the body must determine the applicant’s professional status during the adaptation period.]

(3)A firm which has ceased to comply with the conditions mentioned in sub-paragraph (1)(b) may be permitted to remain eligible for appointment as a statutory auditor for a period of not more than three months.]

Textual Amendments

F1Words in Sch. 10 para. 6(1)(a) inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 17(2)

F2Words in Sch. 10 para. 6(1)(a) substituted (31.12.2020) by S.I. 2019/177, regs. 2, 28(za) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F3Sch. 10 para. 6(1)(aa) inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 17(3)

F4Words in Sch. 10 para. 6(1)(a) substituted (31.12.2020) by S.I. 2019/177, regs. 2, 28(za) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F5Sch. 10 para. 6(1)(aa)(iii) substituted (17.6.2016) by The Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), reg. 1(1)(a), Sch. 3 para. 57(2)

F6Words in Sch. 10 para. 6(1)(b) omitted (31.12.2020) by virtue of S.I. 2019/177, regs. 2, 28(zc) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F7Sch. 10 para. 6(1)(c) omitted (31.12.2020) by virtue of S.I. 2019/177, regs. 2, 28(a) (as substituted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(ii)); 2020 c. 1, Sch. 5 para. 1(1)

F8Sch. 10 para. 6(1A) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 28(b) (as amended by S.I. 2019/1392, regs. 1(2), 6 (as amended by S.I. 2020/523, regs. 1(2), 27)); 2020 c. 1, Sch. 5 para. 1(1)