SCHEDULE 3Amendments to the Companies Act 2006

PART 5Amendments to Part 42 of the Companies Act 2006

58.

(1)

Paragraph 9 is amended as follows.

(2)

In sub-paragraph (1)(c) for “from any significant threats to it” substitute “ in accordance with the standards mentioned in sub-paragraph (3A) ”.

(3)

In sub-paragraph (1)(d), for the words after “record” substitute “ the matters required to be recorded in accordance with those standards. ”

(4)

Omit sub-paragraph (1)(e).

(5)

After sub-paragraph (1) insert—

“(1A)

The body must have adequate rules and practices designed to ensure that, except where the audited person is a public interest entity—

(a)

an individual who has been appointed as statutory auditor may not be appointed as a director or other officer of the audited person or be concerned in the management of the audited person during a period of not less than one year determined in standards set by the competent authority and commencing on the date on which the individual's appointment as a statutory auditor ended;

(b)

a key audit partner of a firm which has been appointed as statutory auditor may not be appointed as a director or other officer of the audited person or be concerned in the management of the audited person during a period of not less than one year to be determined in standards set by the competent authority and commencing on the date on which the firm's appointment as a statutory auditor ended.”.

(6)

Omit sub-paragraph (2).

(7)

In sub-paragraph (3), omit paragraphs (a) and (c) and the “and” at the end of paragraph (b).

(8)

After sub-paragraph (3) insert—

“(3A)

The rules and practices mentioned in sub-paragraphs (1) and (3) must include provision requiring compliance with standards for the time being determined by the competent authority under the Statutory Auditors and Third Country Auditors Regulations 2016.”.

(9)

In sub-paragraph (4), for “sub-paragraph (3)(b) (confidentiality of information)” substitute “ sub-paragraphs (1A) and (3)(b) ”.

(10)

After sub-paragraph (4) insert—

“(5)

An auditor is not to be regarded as an officer of the audited person for the purposes of sub-paragraph (1A) (a) and (b).”.