The Statutory Auditors and Third Country Auditors Regulations 2016

General requirements of auditors

4.—(1) A person appointed to conduct a statutory audit must conduct that audit in accordance with the relevant standards for the conduct of statutory audits.

(2) The relevant standards are—

(a) the standards of integrity, objectivity, professional competence, due care and professional scepticism as determined by the competent authority in accordance with Schedule 1;

(b) the international auditing standards adopted by the European Commission in accordance with Article 26(3) of the Audit Directive (“Commission-adopted international standards”);

(c) any auditing standards, procedures or requirements imposed by the competent authority in accordance with paragraph (3)(a);

(d) auditing procedures or requirements imposed by the competent authority in accordance with paragraph (3)(b); and

(e) the requirements of rules and practices of the recognised supervisory body of which the auditor is a member, provided that the rules and practices are rules and practices required by virtue of Part 2 of Schedule 10 to the Act.

(3) The competent authority may—

(a) impose auditing standards, procedures or requirements which do not cover the same subject-matter as Commission adopted international standards; or

(b) impose auditing procedures or requirements which cover the same subject-matter as Commission-adopted international standards but are necessary—

(i) to give effect to any relevant requirement relating to the scope of statutory audit; or

(ii) to add to the credibility and quality of financial statements.

(4) In this regulation “relevant requirement” has the same meaning as in regulation 5.