The Statutory Auditors and Third Country Auditors Regulations 2016
PART 1Introduction
1Citation, commencement and application
2Interpretation
PART 2The Competent Authority
3The competent authority
4General requirements of auditors
5The competent authority: sanctioning powers
6Publication of sanctions and measures
7Enforcement of sanctions
8Recovery of financial penalties
9Monitoring of Audits by the Competent Authority
10Investigation powers
11Performance, monitoring and enforcement of third country audit functions
PART 3Restrictions on choice of Auditor
12Contractual terms restricting choice of auditor
PART 4Miscellaneous
13Power to grant exemptions from the requirements of Article 4(2) of the Audit Regulation (limit on total fees charged for non-audit services)
14Amendment to the Partnerships (Accounts) Regulations 2008
15Amendments to the Companies Act 2006
16Amendments to the Building Societies Act 1986
17Amendments to other enactments
18Amendment of the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008
19Amendments to the Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012
20Amendment of the Statutory Auditors and Third Country Auditors Regulations 2013
21Exclusion of large debt securities issuer from definition of “UK-traded non-EEA company”
22Amendment of the Companies Act (Transfer of Audit Working Papers to Third Countries) Regulations 2010
23Review
SCHEDULE 1Requirements for professional ethics, independence, objectivity, confidentiality, auditing standards and audit reporting
1In this Schedule— “A” means a person appointed as a...
2(1) Standards must ensure that— (a) A is subject to...
3(1) Standards must ensure that A takes all reasonable steps...
4(1) Standards must ensure that A does not accept appointment...
5(1) Standards must ensure that— (a) none of the persons...
6Standards must ensure that if, during the period covered by...
7(1) Standards must ensure that— (a) where A is an...
8(1) Standards must ensure that, before accepting an appointment as...
9(1) Standards must ensure adequate provision on confidentiality in relation...
10(1) Standards must ensure that A— (a) has appropriate policies...
11(1) Standards must ensure that, when A is a firm,...
12(1) Standards must ensure that A— (a) keeps records of...
13Standards must ensure that remuneration received or receivable by a...
14Standards must ensure that the scope of statutory audit work...
15(1) Standards must ensure that, in the case of a...
16(1) In relation to the audit of public interest entities,...
SCHEDULE 2Investigation Powers
1(1) The competent authority may for any purpose related to...
2(1) If a person fails to comply with a notice...
3(1) This paragraph applies if a person provides information (including...
4(1) An officer of the competent authority may, for the...
5(1) A person commits an offence if the person—
SCHEDULE 3Amendments to the Companies Act 2006
PART 1Introductory
1The Act is amended as set out in Parts 2...
2In this Schedule— (a) a reference to a numbered section...
PART 2Amendment to Part 15 of the Companies Act 2006
3(1) Section 461 (permitted disclosure of information obtained under compulsory...
PART 3Amendments to Chapters 2 to 4 of Part 16 of the Companies Act 2006
4After section 485 insert— Appointment of auditors of private company:...
5(1) Section 486 is amended as follows.
6(1) Section 487 is amended as follows.
7After section 487 insert— Maximum engagement period: transitional arrangements (1) In the case of an auditor who was first...
8After section 489 insert— Appointment of auditors of public company:...
9(1) Section 490 is amended as follows.
10(1) Section 491 is amended as follows.
11After section 491 insert— Maximum engagement period: transitional arrangements (1) In the case of an auditor who was first...
12After section 494 insert— Interpretation In this Chapter— “audit committee” means a body which performs...
13(1) Section 495 is amended as follows.
14(1) Section 496 is amended as follows.
15(1) Section 497A is amended as follows.
16(1) Section 498 is amended as follows.
17(1) Section 503 is amended as follows.
18(1) Section 505 is amended as follows.
19(1) Section 508 is amended as follows.
20(1) Section 509 is amended as follows.
21(1) Section 510 is amended as follows.
22(1) After section 511 insert— Public interest companies: application to...
23(1) Section 513 is amended as follows.
24(1) Section 514 is amended as follows.
25(1) Section 515 is amended as follows.
26(1) Section 519A is amended as follows.
PART 4Amendments to Part 38 of the Companies Act 2006
27(1) Section 1173 (minor definitions: general) is amended as follows....
28(1) Schedule 8 (index of defined expressions) is amended as...
PART 5Amendments to Part 42 of the Companies Act 2006
29(1) Section 1217 is amended as follows.
30(1) Section 1218 is amended as follows.
31After section 1223, insert— Matters to be notified to the...
32(1) Section 1223A is amended as follows.
33After section 1224, insert— The competent authority’s power to call...
34(1) Section 1224A is amended as follows.
35(1) Section 1225 is amended as follows.
36(1) Section 1229 is amended as follows.
37(1) Section 1239 is amended as follows.
38(1) Section 1251A is amended as follows.
39(1) Section 1252 is amended as follows.
40(1) Section 1253 is amended as follows.
41(1) Section 1253B is amended as follows.
42(1) Section 1253C is amended as follows.
43(1) Section 1253D is amended as follows.
44(1) Section 1253DA is amended as follows.
45(1) Section 1253DB is amended as follows.
46In section 1253DC, for “audit working papers” substitute “audit working...
47(1) Section 1253DD is amended as follows.
48(1) Section 1253DE is amended as follows.
49(1) Section 1253E is amended as follows.
50(1) Section 1254 is amended as follows.
51(1) Section 1261 is amended as follows.
52(1) Section 1262 is amended as follows.
53Schedule 10 is amended as follows.
54(1) Paragraph 2 is amended as follows.
55(1) Paragraph 3 is amended as follows.
56In Part 2, before paragraph 6, insert— Delegation etc. of...
57(1) Paragraph 6 is amended as follows.
58(1) Paragraph 9 is amended as follows.
59(1) Paragraph 10 is amended as follows.
60(1) Paragraph 10A is amended as follows.
61Omit paragraph 10B.
62(1) Paragraph 10C is amended as follows.
63For paragraph 11 substitute— The body must have rules and practices designed to ensure...
64(1) Paragraph 12 is amended as follows.
65For paragraphs 13 and 14 substitute— Monitoring of audits (1) The body must— (a) have adequate arrangements for enabling...
66(1) Paragraph 15 is amended as follows.
67For paragraph 16 substitute— Independent investigation for enforcement purposes (1) The body must have rules and practices designed to...
68(1) Paragraph 16A is amended as follows.
69(1) Paragraph 16AB is amended as follows.
70After paragraph 20 insert— Supplementary: funding of arrangements (1) This paragraph applies where, under regulation 3 of the...
71For paragraph 20A substitute— Interpretation In this Part of this Schedule— “audit reporting requirements” has...
72Part 3 is repealed.
73(1) Schedule 11A (specified persons, descriptions, disclosures etc for the...
SCHEDULE 4Amendments to Part 8 of the Building Societies Act 1986
PART 1Introductory
1In this Schedule— (a) a reference to a numbered section...
PART 2Amendments to Part 8 of the Building Societies Act 1986
2Part 8 of the Building Societies Act 1986 is amended...
3In section 78 (auditor’s report)— (a) in subsection (1), before...
4In section 78A (signature of auditor’s report)—
5After section 78C(1) (names to be stated in copies of...
6At the beginning of section 78D(1) (circumstances in which names...
7In subsection 79 (auditor’s duties and powers)—
8In Schedule 11— (a) after paragraph 3 insert— (1) Any term in a contract which, in relation to...
SCHEDULE 5Amendments to other enactments
1Amendments to Part 1 of the Companies (Audit, Investigations and Community Enterprise) Act 2004
2Amendments to Schedule 5 to the Local Audit and Accountability Act 2014

Draft Order laid before Parliament under paragraph 2 of Schedule 2 to the European Communities Act 1972 and section 1290 of the Companies Act 2006, for approval by resolution of each House of Parliament.

2016 No. XXXX

Companies
Auditors

The Statutory Auditors and Third Country Auditors Regulations 2016

Made

Coming into force in accordance with regulation 1(1)

The Secretary of State is a Minister designated1 for the purposes of section 2(2) of the European Communities Act 19722 in relation to auditors and the audit of accounts.

The Secretary of State makes these Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and by sections 494(1), (2)(b) and (4)(a), 519A(5), 1241(2)(c), 1252(1) and (8) and 1292(1)(a), (2) and (4) and paragraph 11(2) of Schedule 13 to of the Companies Act 20063.

In accordance with paragraph 2 of Schedule 2 to the European Communities Act 1972 and section 1290 of the Companies Act 2006, a draft of these Regulations has been laid before Parliament and approved by resolution of each House of Parliament.