Companies Act 2006

Professional integrity and independence

9 (1) The body must have adequate rules and practices designed to ensure that—

(a) statutory audit work is conducted properly and with integrity, and

(b) persons are not appointed as statutory auditors in circumstances in which they have an interest likely to conflict with the proper conduct of the audit.

(2) The body must participate in arrangements within paragraph 21, and the rules and practices mentioned in sub-paragraph (1) must include provision requiring compliance with any standards for the time being determined under such arrangements.

(3) The body must also have adequate rules and practices designed to ensure that no firm is eligible under its rules for appointment as a statutory auditor unless the firm has arrangements to prevent a person to whom sub-paragraph (4) applies from being able to exert any influence over the way in which a statutory audit is conducted in circumstances in which that influence would be likely to affect the independence or integrity of the audit.

(4) This sub-paragraph applies to—

(a) any individual who is not a qualified person within the meaning of paragraph 7, and

(b) any person who is not a member of the firm.