Part 42Statutory Auditors
Chapter 2Individuals and firms
Independence requirement
1214Independence requirement
(1)
A person may not act as statutory auditor of an audited person if one or more of subsections (2), (3) and (4) apply to him.
(2)
This subsection applies if the person is—
(a)
an officer or employee of the audited person, or
(b)
a partner or employee of such a person, or a partnership of which such a person is a partner.
(3)
This subsection applies if the person is—
(a)
an officer or employee of an associated undertaking of the audited person, or
(b)
a partner or employee of such a person, or a partnership of which such a person is a partner.
(4)
This subsection applies if there exists, between—
(a)
the person or an associate of his, and
(b)
the audited person or an associated undertaking of the audited person,
a connection of any such description as may be specified by regulations made by the Secretary of State.
(5)
An auditor of an audited person is not to be regarded as an officer or employee of the person for the purposes of subsections (2) and (3).
(6)
In this section “associated undertaking”, in relation to an audited person, means—
(a)
a parent undertaking or subsidiary undertaking of the audited person, or
(b)
a subsidiary undertaking of a parent undertaking of the audited person.
(7)
Regulations under subsection (4) are subject to negative resolution procedure.