C1C2C3C4Part 42Statutory Auditors
Pt. 42: functions transferred in part (6.4.2008 in accordance with art. 1 of the amending S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)
Pt. 42 applied (with modifications) (15.8.2008) by The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 (S.I. 2008/1950), reg. 6(5)
Pt. 42: functions transferred in part (2.7.2012) by The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 (S.I. 2012/1741), arts. 1(2), 7, 8, 9 (with art. 16)
Chapter 1Introductory
1209Main purposes of Part
The main purposes of this Part are—
a
to secure that only persons who are properly supervised and appropriately qualified are appointed as statutory auditors, and
b
to secure that audits by persons so appointed are carried out properly, with integrity and with a proper degree of independence.
I11210Meaning of “statutory auditor” etc
1
In this Part “statutory auditor” means—
a
a person appointed as auditor under Part 16 of this Act,
b
a person appointed as auditor under section 77 of or Schedule 11 to the Building Societies Act 1986 (c. 53),
c
a person appointed as auditor of an insurer that is a friendly society under section 72 of or Schedule 14 to the Friendly Societies Act 1992 (c. 40),
d
a person appointed as auditor of an insurer that is an industrial and provident society under section 4 of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) or under section 38 of the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.)),
e
a person appointed as auditor for the purposes of regulation 3 of the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2004 (S.I. 2004/3219) or appointed to report on the “aggregate accounts” within the meaning of those Regulations,
f
a person appointed as auditor of an insurer for the purposes of regulation 3 of the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 1993 (S.I. 1993/3245),
g
a person appointed as auditor of a bank for the purposes of regulation 4 of the Bank Accounts Directive (Miscellaneous Banks) Regulations 1991 (S.I. 1991/2704), and
h
a person appointed as auditor of a prescribed person under a prescribed enactment authorising or requiring the appointment;
and the expressions “statutory audit” and “statutory audit work” are to be construed accordingly.
2
In this Part “audited person” means the person in respect of whom a statutory audit is conducted.
3
In subsection (1)—
“bank” means a person who—
- a
is a credit institution within the meaning given by Article 4.1(a) of Directive 2006/48/EC of the European Parliament and of the Council relating to the taking up and pursuit of the business of credit institutions, and
- b
is a company or a firm as defined in Article 48 of the Treaty establishing the European Community;
- a
“friendly society” means a friendly society within the meaning of the Friendly Societies Act 1992 (c. 40);
“industrial and provident society” means—
- a
a society registered under the Industrial and Provident Societies Act 1965 (c. 12) or a society deemed by virtue of section 4 of that Act to be so registered, or
- b
a society registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 or a society deemed by virtue of section 4 of that Act to be so registered;
- a
“insurer” means a person who is an insurance undertaking within the meaning given by Article 2.1 of Council Directive 1991/674/EEC on the annual accounts and consolidated accounts of insurance undertakings;
“prescribed” means prescribed, or of a description prescribed, by order made by the Secretary of State for the purposes of subsection (1)(h).
4
An order under this section is subject to negative resolution procedure.
1211Eligibility for appointment as a statutory auditor: overview
A person is eligible for appointment as a statutory auditor only if the person is so eligible—
a
by virtue of Chapter 2 (individuals and firms), or
b
by virtue of Chapter 3 (Comptroller and Auditor General, etc).
Pt. 42 modified (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 43