Home Resources Legal Updates August 2017

Statutory Auditors and Third Country Auditors Regulations

31 August 2017

Who does this affect: England, Scotland and Northern Ireland.
When does this come into force: 1 May 2017

They follow the obligations made by EU legislation by amending various pieces of legislation, changing and transposing the EU law in relation to the specific requirements regarding statutory audit of public-interest entities. 

The transposition for each entity mirrors the transposition for companies as far as possible, making appropriate adjustments to take account of the nature of the entity concerned and the relevant legal framework for that entity.

The general effect of the changes is in relation to rotation and retendering for the statutory auditor of a "public interest entity". A maximum engagement period of ten years is introduced, although this can be extended to 20 years provided that there is a selection procedure at least every ten years.

The main change in respect of existing transposition for companies and building societies (which is then mirrored for friendly societies) is to make the provisions relating to rotation and retendering for statutory auditors clearer, but there are also some minor and technical amendments.

Revocations and amendments - see Cedrec