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New Section 169 replaces the former Section 169. The old Section 169 provided that a person could only be an auditor if they were a certified accountant. New Section 169 does away with this requirement: there are no longer any objective standards as to who can or cannot act as an auditor. Instead, any person seeking to serve as an auditor must be recognised by the Registrar to act in this capacity. Section 169(3) states:
(3) The Registrar must not recognise a person as a qualified auditor unless—
- "(a) the person meets the experience and qualifications requirements specified in regulations (if any); or
- "(b) if no regulations are made, the Registrar is satisfied that the person’s experience and qualifications make it appropriate for the person to be an auditor.
Section 169(5) now requires the Registrar to maintain a register of auditors. If you seek to become an auditor, you must visit MOJ to begin the process of recognition and registration. The full text of new Section 169 is set out below:
169 Qualifications of auditor
- (1) A person (whether an individual or a company) is a qualified auditor if—
- (a) the Registrar has, in writing, recognised the person as a qualified auditor for the purposes of this Act; and
- (b) the person is not disqualified from being or acting as an auditor under subsection (2).
- (2) The following persons must not be appointed or act as auditor of a company:
- (a) a director or employee of the company, or any person responsible for keeping the company’s accounting records:
- (b) a person who is a business partner or employee of a person referred to in paragraph (a):
- (c) a liquidator, or a person who is a receiver in respect of the property of the company:
- (d) a person who, by virtue of paragraph (a) or (b), may not be appointed or act as auditor of a related company.
- (3) The Registrar must not recognise a person as a qualified auditor unless—
- (a) the person meets the experience and qualifications requirements specified in regulations (if any); or
- (b) if no regulations are made, the Registrar is satisfied that the person’s experience and qualifications make it appropriate for the person to be an auditor.
- (4) The Registrar may revoke a recognition given under subsection (1)(a).
- (5) The Registrar must keep a register of auditors recognised as qualified auditors under subsection (1)(a).
- (6) The Director is a qualified auditor of a company for the purposes of this Act.
- (7) In subsection (6), Director means the Director of the Office of the Public Expenditure Review Committee and Audit appointed under the Public Expenditure Review Committee and Audit Act 1995-96.”