Transfer of papers to third countries16A

1

The body must have adequate rules and practices designed to ensure that persons eligible under its rules for appointment as a statutory auditor deliver audit working papers to a third country competent authority only if—

a

the authority has entered into arrangements with the Secretary of State in accordance with section 1253E (working arrangements); and

b

the following four conditions are met.

2

The first condition is that the competent authority has requested the audit working papers for the purposes of an investigation.

3

The second condition is that the competent authority has given to the Secretary of State notice of its request.

4

The third condition is that the papers relate to the audit of a body which—

a

has issued securities in the country or territory in which the competent authority is established, or

b

forms part of a group issuing statutory consolidated accounts in that country or territory.

5

The fourth condition is that no legal proceedings have been brought (whether continuing or not) in relation to the auditor or audit to which the working papers relate.

6

The body must also have adequate rules and practices designed to ensure that a person eligible under its rules for appointment as a statutory auditor may refuse to deliver audit working papers to a third country competent authority if the Secretary of State certifies that the delivery of the papers would adversely affect the sovereignty, security or public order of the United Kingdom.