106. In regulation 3 (the competent authority)—
(a)in paragraph (2)(b), for “paragraph (5)” substitute “ paragraphs (5), (5A) and (5B) ”;
(b)after paragraph (5), insert—
“(5A) Any delegation under paragraph (2) of the competent authority's responsibilities under sub-paragraphs (k), (l) or (m) of paragraph (1) must not prejudice the competent authority's ability to initiate and conduct an inspection or investigation of audit work by a statutory auditor itself, where necessary, and to take appropriate action.
(5B) In determining the delegation of tasks, the competent authority must ensure that conflicts of interest are avoided.”;
(c)after paragraph (13), insert—
“(14) The members of the management body of the competent authority must be individuals who—
(a)are knowledgeable in the areas relevant to statutory audit;
(b)are selected in accordance with an independent and transparent nomination procedure;
(c)during their period in office are non-practitioners, and in the three years preceding their appointment were non-practitioners.
(15) In paragraph (14), a “non-practitioner” is a person who is not—
(a)carrying out statutory audit work;
(b)a member of the ownership or management body of a firm that is eligible for appointment as a statutory auditor;
(c)employed by or otherwise associated with a firm that is eligible for appointment as a statutory auditor.”.
Commencement Information
I1Reg. 106 in force at 22.2.2019, see reg. 2