The Statutory Auditors Regulations 2017

First financial year of the maximum engagement period	Last financial year of the maximum engagement period
A financial year of the LLP beginning before 17 June 1994.	The last financial year of the LLP to begin before 17 June 2020.
A financial year of the LLP beginning— (a) on or after 17 June 1994, and (b) before 17 June 2003.	The last financial year of the LLP to begin before 17 June 2023.
A financial year of the LLP beginning— (a) on or after 17 June 2003, and (b) before 17 June 2016.	No qualifying selection procedure Where neither the first financial year of the maximum engagement period nor any subsequent financial year is one for which the auditor has been appointed following the carrying out of a qualifying selection procedure, the later of— (a) the last financial year of the LLP to begin before 17 June 2016, and (b) the last financial year of the LLP to begin within the period of 10 years beginning with the first day of the first financial year of the maximum engagement period. No qualifying selection procedure within 10 years Where the last day of the last financial year of the LLP to begin within the period of 10 years beginning with the first day of the last financial year of the LLP for which the auditor was appointed following a qualifying selection procedure is before 17 June 2016— (a) the last financial year of the LLP to begin before 17 June 2016, unless (b) the auditor is appointed following a qualifying selection procedure for the first financial year of the LLP to begin on or after 17 June 2016, in which case it is the last financial year of the LLP to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period. Qualifying selection procedure within 10 years In any other case, the earlier of— (a) the last financial year of the LLP to begin within the period of 10 years beginning with the first day of the last financial year of the LLP for which the auditor was appointed following a qualifying selection procedure, and (b) the last financial year of the LLP to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period.
A financial year of the LLP beginning on or after 17 June 2016.	The earlier of— (a) the last financial year of the LLP to begin within the period of 10 years beginning with the first day of the last financial year of the LLP for which the auditor was appointed following a qualifying selection procedure, and (b) the last financial year of the LLP to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period.

(2) Where the first financial year of the maximum engagement period begins on or after 17 June 2003, the maximum engagement period may be extended by a period of no more than 2 years with the approval of the competent authority.
(3) Such approval may be given by the competent authority only if it is satisfied that exceptional circumstances exist.
(4) Where the competent authority gives its approval as mentioned in subsection (2)—
  (a) the second column of the Table in subsection (1) has effect with the necessary modifications, and
  (b) the first appointment to be made after the end of the period as so extended must be made following a qualifying selection procedure.
(5) In this section “qualifying selection procedure” means—
  (a) in the case of an appointment for a financial year beginning on or after 17 June 2016 made after the Statutory Auditors and Third Country Auditors Regulations 2017 come into force—
    (i) if the LLP has an audit committee, a selection procedure that complies with the requirements of section 485A(4) and (5)(a) and (b), and
    (ii) if the LLP does not have an audit committee, a selection procedure that complies with the requirements of Article 16(3) and (4) of the Audit Regulation;
  (b) in any other case, a selection procedure that substantially meets the requirements of Article 16(2) to (5) of the Audit Regulation, having regard to the circumstances at the time (including whether the LLP had an audit committee).

(38B) Section 494A applies to LLPs, modified so that it reads as follows— (494A) In this Chapter— - “audit committee” means a body which performs the functions referred to in Article 39(6) of the Audit Directive or equivalent functions; - “Audit Directive” means Directive 2006/43/EC of the European Parliament and of the Council on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC[^f00074]; - “Auditor General” means— the Comptroller and Auditor General, the Auditor General for Scotland, the Auditor General for Wales, or the Comptroller and Auditor General for Northern Ireland; - “issuer” has the same meaning as in Part 6 of the Financial Services and Markets Act 2000 (see section 102A(6)[^f00075]); - “network” means an association of persons other than a firm co-operating in audit work by way of— profit-sharing; cost sharing; common ownership, control or management; common quality control policies and procedures; common business strategy; or use of a common name; - “public interest entity” means— an issuer whose transferable securities are admitted to trading on a regulated market; a credit institution within the meaning given by Article 4(1)(1) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council[^f00076], other than one listed in Article 2 of Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and investment firms[^f00077]; - “regulated market” has the same meaning as in Part 6 of the Financial Services and Markets Act 2000 (see section 103(1)[^f00078]); - “transferable securities” means anything which is a transferable security for the purposes of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments[^f00079].

13

In regulation 39—

• (a) for “Section 495” to “reads” substitute “Sections 495 and 496 apply to LLPs, modified so that they read”;

• (b) in the modified version of section 495 (auditor’s report on LLP’s annual accounts)—

• (i) for subsection (2) substitute—

(2) The auditor’s report must include— (a) the identity of the LLP whose annual accounts are the subject of the audit, (b) a description of the annual accounts that are the subject of the audit (including the period covered by those accounts), (c) a description of the financial reporting framework that has been applied in the preparation of those accounts, and (d) a description of the scope of the audit identifying the auditing standards in accordance with which the audit was conducted.

• (ii) for subsection (4) substitute—

(4) The auditor’s report— (a) must be either unqualified or qualified, (b) must include a reference to any matters to which the auditor wishes to draw attention by way of emphasis without qualifying the report, (c) must include a statement on any material uncertainty relating to events or conditions that may cast significant doubt about the LLP’s ability to continue to adopt the going concern basis of accounting, and (d) must identify the auditor’s place of establishment. (5) Where more than one person is appointed as an auditor— (a) all the persons appointed must jointly make a report under this section and the report must include a statement as to whether all the persons appointed agree on the matters contained in the report, and (b) if all the persons appointed cannot agree on the matters contained in the report, the report must include the opinions of each person appointed and give reasons for the disagreement.

• (c) after the modified version of section 495 insert—

(496) (1) In his report on the LLP’s annual accounts, the auditor must— (a) state whether, in his opinion, based on the work undertaken in the course of the audit— (i) the information given in the strategic report (if any) for the financial year for which the accounts are prepared is consistent with those accounts, and (ii) any such strategic report have been prepared in accordance with applicable legal requirements, (b) state whether, in the light of the knowledge and understanding of the LLP and its environment obtained in the course of the audit, he has identified material misstatements in the strategic report (if any), and (c) if applicable, give an indication of the nature of each of the misstatements referred to in paragraph (b). (2) Where more than one person is appointed as auditor, the report must include a statement as to whether all the persons appointed agree on the statements and indications given under subsection (1) and, if they cannot agree on those statements and indications, the report must include the opinions of each person appointed and give reasons for the disagreement.

14

In regulation 40, in modified section 498 (duties of auditor), after subsection (4) insert—

(5) Where more than one person is appointed as auditor, the report must include a statement as to whether all the persons appointed agree on the statements given under subsections (2) to (5) and, if they cannot agree on those statements, the report must include the opinions of each person appointed and give reasons for the disagreement.

15

In regulation 41—

• (a) in the modified version of section 503 (signature of auditor’s report), after subsection (3) insert—

(4) Where more than one person is appointed as auditor, the report must be signed by all those appointed.

• (b) in the modified version of section 504 (senior statutory auditor), for subsection (1)(b)(ii) substitute—

(ii) the Financial Reporting Council Limited[^f00080].

• (c) in the modified version of section 505 (names to be stated in published copies of auditor’s report), after subsection (1) insert—

(1A) If more than one person is appointed as auditor, the reference in subsection (1)(a) to the name of the auditor is to be read as a reference to the names of all the auditors.

• (d) in the modified version of section 506 (circumstances in which names may be omitted), in subsection (1) for “The auditor’s” substitute “An auditor’s”.

16

In regulation 43—

• (a) in the modified version of section 510 (removal of auditor), for subsection (3) substitute—

(3) An auditor may not be removed from office before the expiration of his term of office except— (a) by resolution under this section, or (b) in accordance with section 511A.

• (b) after the modified version of section 511 (notice of removal of auditor) insert—

(511A) (1) This section applies only to a public interest LLP. (2) The competent authority may apply to the court for an order removing an auditor of an LLP from office if the authority considers that there are proper grounds for removing the auditor from office. (3) The members of an LLP may apply to the court for an order removing an auditor of the LLP from office if the applicant or applicants consider that there are proper grounds for removing the auditor from office. (4) If the court is satisfied, on hearing an application under subsection (2), that there are proper grounds for removing the auditor from office, it may make an order removing the auditor from office. (5) If the court is satisfied, on hearing an application under subsection (3), that— (a) the applicants represent in total not less than 5% of the voting rights of all the members having a right to vote at a general meeting of the LLP, and (b) there are proper grounds for removing the auditor from office, the court may make an order removing the auditor from office. (6) For the purposes of this section, divergence of opinions on accounting treatments or audit procedures are not to be taken to be proper grounds for removing an auditor from office.

• (c) omit the modified version of section 512 (notice to registrar of determination removing auditor from office).

17

In regulation 44, in the modified version of section 513 (rights of auditor who has been removed from office), in subsection (1), after “removed” insert “by the members under section 510 or by order of the court under section 511A”;

18

In regulation 45—

• (a) in the modified version of section 515 (failure to re-appoint auditor: rights of auditor who is not re-appointed), for subsections (1) and (2) substitute—

(1) If an LLP wishes to appoint a person as auditor in place of a person who is an auditor of the LLP and who is to cease to hold office at the end of a period for appointing auditors (the “outgoing auditor”), the LLP must give the outgoing auditor seven days’ notice; no person may be appointed as auditor in the absence of such notice. But notice is not required under this subsection if the auditor is to cease to hold office by virtue of section 510, 511A or 516. (2) The outgoing auditor may, in response to receipt of a notice given under subsection (1), make representations in writing to the LLP (not exceeding a reasonable length) and request their notification to members of the LLP.

• (b) in the modified version of section 516 (resignation of auditor)—

• (i) in subsection (1), for the words from “depositing” to the end of the subsection substitute “sending a notice to that effect to the LLP”;

• (ii) at the beginning of subsection (2), for “The” substitute “Where the LLP is a public interest LLP, the”;

• (iii) in subsection (3), for “deposited” substitute “received”;

• (c) omit the modified version of section 517 (notice to registrar of resignation of auditor);

• (d) in the modified version of section 518 (rights of resigning auditor)—

• (i) for subsection (1) substitute—

(1) This section applies where an auditor’s (A’s) notice of resignation is accompanied by a statement under section 519 except where— (a) the LLP is a non-public interest LLP, and (b) the statement includes a statement to the effect that A considers that none of the reasons for A’s ceasing to hold office, and no matters (if any) connected with A’s ceasing to hold office, need to be brought to the attention of members or creditors of the LLP (as required by section 519(2E)).

• (ii) in subsection (2)—

• (aa) for “deposit” substitute “send”;

• (bb) for “a signed” substitute “an authenticated”;

• (cc) for “circumstances connected with” substitute “reasons for, and matters connected with,”;

• (iii) in subsection (3), for “circumstances connected with” substitute “reasons for, and matters connected with,”;

• (iv) in subsection (5), for “of the deposit of” substitute “on which the LLP receives”.

19

In regulation 46—

• (a) in the modified version of section 519 (statement by auditor to be deposited with LLP)—

• (i) in the heading, for “deposited with” substituted “sent to”;

• (ii) for subsections (1) and (2) substitute—

(1) An auditor of a public interest LLP who is ceasing to hold office (at any time and for any reason) must send to the LLP a statement of the reasons for doing so. (2) An auditor (“A”) of a non-public interest LLP who is ceasing to hold office must send to the LLP a statement of the reasons for doing so unless A satisfies the first or second condition. (2A) The first condition is that A is ceasing to hold office at the end of a period for appointing auditors. (2B) The second condition is that— (a) A’s reasons for ceasing to hold office are all exempt reasons (as to which see section 519A(3)), and (b) there are no matters connected with A’s ceasing to hold office that A considers need to be brought to the attention of members or creditors of the LLP. (2C) A statement under this section must include— (a) the auditor’s name and address; (b) the number allocated to the auditor on being entered in the register of auditors kept under section 1239; (c) the LLP’s name and registered number. (2D) Where there are matters connected with an auditor’s ceasing to hold office that the auditor considers need to be brought to the attention of members or creditors of the LLP, the statement under this section must include details of those matters. (2E) Where— (a) an auditor (“A”) of a non-public interest LLP is required by subsection (2) to send a statement, and (b) A considers that none of the reasons for A’s ceasing to hold office, and no matters (if any) connected with A’s ceasing to hold office, need to be brought to the attention of members or creditors of the LLP, A’s statement under this section must include a statement to that effect.

• (iii) in subsection (3)—

• (aa) for “The statement required by this section” substitute “A statement under this section”;

• (bb) for “deposited” substitute “sent”;

• (b) after the modified version of section 519 insert—

(519A) (1) In this Chapter— - “public interest LLP” means an LLP— an issuer whose transferable securities are admitted to trading on a regulated market; or a credit institution within the meaning given by Article 4(1)(1) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council, other than one listed in Article 2 of Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and investment firms; - “non-public interest LLP” means an LLP that is not a public interest LLP. (2) For the purposes of the definition of “public interest LLP”— - “issuer” has the same meaning as in Part 6 of the Financial Services and Markets Act 2000 (see section 102A(6)[^f00081]); - “regulated market” has the same meaning as in Part 6 of the Financial Services and Markets Act 2000 (see section 103(1)[^f00082]); - “transferable securities” means anything which is a transferable security for the purposes of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments[^f00083]. (3) In the application of this Chapter to an auditor (“A”) of an LLP ceasing to hold office, the following are “exempt reasons”— (a) A is no longer to carry out statutory audit work within the meaning of Part 42 (see section 1210(1)); (b) the LLP is, or is to become, exempt from audit under section 477, 479A or 480, and intends to include in its balance sheet a statement of the type described in section 475(2); (c) the LLP is a subsidiary undertaking of a parent undertaking that is incorporated in the United Kingdom and— (i) the parent undertaking prepares group accounts, and (ii) A is being replaced as auditor of the LLP by the auditor who is conducting, or is to conduct, an audit of the group accounts; (d) the LLP is being wound up under Part 4 of the Insolvency Act 1986 or Part 5 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), whether voluntarily or by the court, or a petition under Part 4 of that Act or Part 5 of that Order (as applied to LLPs) for the winding up of the LLP has been presented and not finally dealt with or withdrawn. In this paragraph the references— (i) to Part 4 of the Insolvency Act 1986 are to that Part as applied to LLPs by the Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090), and (ii) to Part 5 of the Insolvency (Northern Ireland) Order 1989 are to that Part as applied to LLPs by the Limited Liability Partnerships Regulations (Northern Ireland) 2004 (S.R. (NI) 2004 No 307). (4) But the reason described in subsection (3)(c) is only an exempt reason if the auditor who is conducting, or is to conduct, an audit of the group accounts is also conducting, or is also to conduct, the audit (if any) of the accounts of each of the subsidiary undertakings (of the parent undertaking) that is incorporated in the United Kingdom and included in the consolidation.

• (c) in the modified version of section 520 (LLP’s duties in relation to statement)—

• (i) for subsection (1), substitute—

(1) This section applies where an LLP receives from an auditor (“A”) who is ceasing to hold office a statement under section 519 except where— (a) the LLP is a non-public interest LLP, and (b) the statement includes a statement to the effect that A considers that none of the reasons for A’s ceasing to hold office, and no matters (if any) connected with A’s ceasing to hold office, need to be brought to the attention of members or creditors of the LLP (as required by section 519(2E)).

• (ii) in subsection (2)—

• (aa) at the beginning, for “The” substitute “Where this section applies, the”;

• (bb) for “deposit” substitute “receipt”;

• (d) in the modified version of section 521 (copy of statement to be sent to registrar)—

• (i) before subsection (1) insert—

(A1) This section applies where an auditor (“A”) of an LLP sends a statement to the LLP under section 519 except where— (a) the LLP is a non-public interest LLP, and (b) the statement includes a statement to the effect that A considers that none of the reasons for A’s ceasing to hold office, and no matters (if any) connected with A’s ceasing to hold office, need to be brought to the attention of members or creditors of the LLP (as required by section 519(2E)).

• (ii) in subsection (1)—

• (aa) for “Unless” substitute “Where this section applies, unless”;

• (bb) for “deposited” substitute “sent”;

• (e) in the modified version of section 522 (duty of auditor to notify appropriate audit authority)—

• (i) in the heading, for “notify” substitute “send statement to”;

• (ii) for subsections (1) to (4) substitute—

(1) Where an auditor of an LLP sends a statement under section 519, the auditor must at the same time send a copy of the statement to the appropriate audit authority.

• (f) in the modified version of section 523 (duty of LLP to notify appropriate audit authority), for subsections (1) to (3) substitute—

(1) This section applies if an auditor is ceasing to hold office at any time other than at the end of a period for appointing auditors. (1A) But this section does not apply if the LLP reasonably believes that the only reasons for the auditor’s ceasing to hold office are exempt reasons (as to which see section 519A(3)). (2) Where this section applies, the LLP must give notice to the appropriate audit authority that the auditor is ceasing to hold office. (2A) The notice is to take the form of a statement by the LLP of what the LLP believes to be the reasons for the auditor’s ceasing to hold office and must include the information listed in section 519(2C). This is subject to subsection (2C). (2B) Subsection (2C) applies where— (a) the LLP receives a statement from the auditor under section 519, (b) the statement is sent at the time required by section 519(3), and (c) the LLP agrees with the contents of the statement. (2C) Where this subsection applies, the notice may instead take the form of a copy of the statement endorsed by the LLP to the effect that it agrees with the contents of the statement. (3) A notice under this section must be given within the period of 28 days beginning with the day on which the auditor ceases to hold office.

• (g) in the modified version of section 524 (information to be given to accounting authorities)—

• (i) in the heading, for “Information to be given” substitute “Provision of information”;

• (ii) for subsection (1) substitute—

(1) Where the appropriate audit authority receives a statement under section 522 or a notice under section 523, the authority may forward to the accounting authorities— (a) a copy of the statement or notice, and (b) any other information the authority has received from the auditor or the LLP concerned in connection with the auditor’s ceasing to hold office.

• (h) in the modified version of section 525 (meaning of “appropriate audit authority” and “major audit”)—

• (i) in the heading, omit “and “major audit””;

• (ii) in subsection (1)(a), for the words from the beginning to “Auditor General)” substitute “in relation to an auditor of a public interest LLP (other than an Auditor General)”;

• (iii) in subsection (1)(b), for the words from the beginning to “a major audit” substitute “in relation to an auditor of a non-public interest LLP (other than an Auditor General)”;

• (iv) in subsection (1)(c), for “in the case of an audit conducted by” substitute “in relation to”;

• (v) omit subsections (2) and (3).

20

In regulation 55, in the modified version of section 1173 (minor definitions: general), at the appropriate places insert—

• “the Audit Regulation” means Regulation 537/2014 of the European Parliament and of the Council on specific requirements regarding statutory audit of public interest entities[^f00084];

; and

• “the competent authority” means the Financial Reporting Council Limited[^f00085]

21

In regulation 59 (review)—

• (a) for paragraph (1)(a) substitute—

(a) carry out a review of the regulatory provision contained in these Regulations to which amendments have been made by— (i) Part 2 of the Limited Liability Partnerships, Partnerships and Groups (Accounts and Audit) Regulations 2016 (“the 2016 Regulations”), and (ii) Schedule 3 to the Statutory Auditors Regulations 2017,

• (b) after paragraph (1) insert—

(1A) Section 30(3) of the Small Business, Enterprise and Employment Act 2015[^f00086] requires that a review carried out under paragraph (1)(a)(ii) of this regulation must, so far as is reasonable, have regard to how— (a) Articles 28 and 38 of Directive 2006/43/EC of the European Parliament and of the Council on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC[^f00087], and (b) Articles 16, 17 and 41 of Regulation (EU) No 537/2014 of the European Parliament and of the Council on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC, are implemented in other member States.

• (c) in paragraph (2), for “The report” substitute “Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this regulation”;

• (d) in paragraph (5)—

• (i) for “meaning given by section 32(4)” substitute “same meaning as in sections 28 to 32”;

• (ii) after “Act 2015” insert “(see section 32 of that Act)”.

SCHEDULE 4 — Revocations and repeals

(1)	(2)	(3)	(4)
	Enactment revoked or repealed	References	Extent of revocation or repeal
1	The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001	S.I. 2001/3649	Articles 417 and 450
2	The Life Assurance Consolidation Directive (Consequential Amendments) Regulations 2004	S.I. 2004/3379	Regulation 8
3	The Bank Accounts Directive (Miscellaneous Banks) (Amendment) Regulations 2005	S.I. 2005/1984	The whole Regulations
4	Insurance Accounts Directive (Miscellaneous Insurance Undertakings) (Amendment) Regulations 2005	S.I. 2005/1985	The whole Regulations
5	The Companies Act 2006	2006 c. 46	Section 1210(1)(g)
6	The Bank Accounts Directive (Miscellaneous Banks) Regulations 2008	S.I. 2008/567	The whole Regulations
7	The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013	S.I. 2013/472	Paragraph 138 of Schedule 2
8	The Statutory Auditors and Third Country Auditors Regulations 2016	S.I. 2016/649	Paragraph (e) of the definition of “audit reporting requirements” in regulation 2 Paragraph (g) of the definition of “relevant requirement” in regulation 5(11)

Signed

Margot James — Minister for Small Business, Consumers and Corporate Responsibility — Department for Business, Energy and Industrial Strategy — 28th November 2017

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations implement obligations in Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (OJ L 157, 09.06.06, p.87) and Regulation (EU) 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC (“the Audit Regulation”) (OJ L 158, 27.05.14, p.77). The amended Directive 2006/43/EC is known as “the Audit Directive”. The Audit Regulation is directly applicable, but changes have been made to domestic law to remove inconsistencies between domestic law and the Audit Regulation.

Previous transposing regulations were the Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649) and the Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516). This instrument completes the transposition for the United Kingdom.

Regulation 3 and Schedule 1 make amendments in respect of the transposition for building societies, friendly societies and companies, in particular to provide an effective enforcement mechanism for the rotation and retendering for statutory auditors, and also to provide consistency between the legislative frameworks for these entities.

Regulation 4 and Schedule 2 make amendments to the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 (S.I. 2008/565) to implement requirements of the Audit Directive and the Audit Regulation in respect of miscellaneous forms of insurance undertaking. This includes insurers that are co-operative or community benefit societies (previously industrial and provident societies) in Great Britain, and industrial and provident societies in Northern Ireland. However, from 6th April 2018, when certain amendments to the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24) made by the Credit Unions and Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (c. 16) come into force, new societies in Northern Ireland will be co-operative or community benefit societies.

Regulation 5 and Schedule 3 make amendments to the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (S.I. 2008/1911). This is to give effect to requirements of the Audit Directive and the Audit Regulation for limited liability partnerships which are public-interest entities, and otherwise to mirror the legislative framework for companies to ensure consistency of requirements for the auditing of different types of business entities.

Regulations 6 to 13 make consequential amendments to the Companies (Revision of Defective Accounts and Reports) Regulations 2008 (S.I. 2008/373) to take account of the changes to the requirements in respect of audit reporting made by the Statutory Auditors and Third Country Auditors Regulations of both 2016 and 2017 and by these Regulations.

Regulations 15 and 16 make consequential amendments to the Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649). Regulations 17 and 18 make consequential amendments to the Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 (S.I. 2012/1741).

Regulation 19 and Schedule 4 give effect to a number of revocations and repeals. The Bank Accounts Directive (Miscellaneous Banks) Regulations 2008 (S.I. 2008/567) are revoked for accounting years beginning on or after 30th November 2018, as there will no longer be any miscellaneous banks in existence by that date. There are also consequential revocations and repeals, and the revocation of spent enactments.

On 23 June, the EU referendum took place and the people of the United Kingdom voted to leave the European Union. Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. During this period the Government will continue to negotiate, implement and apply EU legislation. The outcome of these negotiations will determine what arrangements apply in relation to EU legislation in future once the UK has left the EU.

A transposition note is available alongside these Regulations at www.legislation.gov.uk.

A full regulatory impact assessment of the effect of transposition of the Audit Directive and the Audit Regulation on the costs of business and the voluntary sector is available from the Business Environment Directorate, Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London SW1H OET or from www.gov.uk/beis, and is also available alongside the Statutory Auditors and Third Country Auditors Regulations 2016 at www.legislation.gov.uk.

Footnotes

[^f00001]: S.I. 2007/1679.

[^f00002]: 1972 c. 68. Section 2(2) was amended by section 27 of the Legislation and Regulatory Reform Act 2006 (c. 51) and by section 3 of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7). Other amendments have been made that are not relevant.

[^f00003]: 2000 c. 12. Section 17 was amended by S.I. 2009/1804.

[^f00004]: 2006 c. 46. Section 454 was amended by S.I. 2013/1970.

[^f00005]: 1992 c. 40. Section 78(1) was amended by S.I. 2001/2617, 2008/1140 and 2013/496.

[^f00006]: 1986 c. 53. Section 81(2) was amended by S.I. 2001/2617 and 2013/496.

[^f00007]: Section 444 was amended by S.I. 2008/393, 2013/308 and 2015/980. Section 444A was inserted by S.I. 2008/393 and amended by S.I. 2009/1581. Section 445 was amended by S.I. 2008/393, 2013/1970 and 2015/980. Section 446 was amended by S.I. 2008/393, 2009/1581 and 2013/1970. Section 447 was amended by S.I. 2009/1581 and 2013/1970.

[^f00008]: 2014 c. 14.

[^f00009]: S.I. 2008/565, amended by S.I. 2013/472, 2014/1815 and 2015/575.

[^f00010]: The registrar as within the meaning given by section 1(1) of the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 (N.I.)).

[^f00011]: 1969 c. 24 (N.I.). Section 48 was amended by S.I. 1997/2984 (N.I. 22), S.I. 2009/1941 and paragraph 38 of Schedule 1 to the Credit Unions and Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (c. 16 (N.I.)).

[^f00012]: S.I. 2008/1911; the relevant amending instrument is S.I. 2016/575.

[^f00013]: See section 119 of that Act for the definition of building society. There are amendments to that section but none is relevant.

[^f00014]: Section 117 has been amended by paragraph 15 of Schedule 9 to the Financial Services (Banking Reform) Act 2013 (c. 33), and section 117A was inserted by paragraph 16 of Schedule 9 to that Act.

[^f00015]: See in particular section 116 of that Act for the definition of friendly society. Section 116 has been amended, but the amendment is not relevant.

[^f00016]: S.I. 2008/373; amended by S.I. 2013/1971, 2013/2224 and 2015/980.

[^f00017]: Section 495 was amended by S.I. 2013/3008, 2016/649 and 2017/516.

[^f00018]: Section 496 was substituted by S.I. 2015/980 and amended by S.I. 2016/649.

[^f00019]: OJ No L 243, 11.09.02, p. 1, amended by Regulation (EC) No 297/2008 ( OJ No L 97, 09.04.08, p. 62).

[^f00020]: Section 498 was amended by S.I. 2008/393, 2013/1970 and 2016/649.

[^f00021]: Section 479A was inserted by S.I. 2012/2301 and partially substituted by S.I. 2015/980.

[^f00022]: 2015 c. 26. Section 30(3) was amended by section 19 of the Enterprise Act 2016 (c. 12).

[^f00023]: OJ No L 157, 09.06.06, p.87, last amended by Directive 2014/56/EU (OJ No L 158, 27.05.14, p. 196).

[^f00024]: S.I. 2016/649, amended by S.I. 2017/516.

[^f00025]: S.I. 2012/1741, amended by S.I. 2014/2009, 2016/649 and 2017/516.

[^f00026]: Entries 1 to 4 concern spent enactments.

[^f00027]: S.I. 2008/567, amended by S.I. 2013/472.

[^f00028]: 1986 c. 53.

[^f00029]: Schedule 10C was inserted by S.I. 2008/1519.

[^f00030]: Relevant amending instruments are S.I. 2008/519, 2013/496, 2016/649 and 2017/516.

[^f00031]: 2006 c. 46. Section 1248 was amended by S.I. 2015/664.

[^f00032]: 1992 c. 40.

[^f00033]: Schedule 13F was inserted by S.I. 2008/1140.

[^f00034]: Schedule 14A was inserted by S.I. 2017/516.

[^f00035]: 2006 c. 46.

[^f00036]: Section 444 was amended by S.I. 2008/393, 2013/3008 and 2015/980.

[^f00037]: Section 444A was inserted by S.I. 2008/393 and amended by S.I. 2009/1581.

[^f00038]: Section 445 was amended by S.I. 2008/393, 2013/1970 and 2015/980.

[^f00039]: Section 446 was amended by S.I. 2008/393, 2009/1581 and 2013/1370.

[^f00040]: Section 447 was amended by S.I. 2009/1581 and 2013/1370.

[^f00041]: Section 463 was amended by S.I. 2013/1370.

[^f00042]: Section 486 was amended by S.I. 2016/649 and 2017/516.

[^f00043]: Sections 485A and 485B were inserted by S.I. 2016/649 and amended by S.I. 2017/516. Section 485C was inserted by S.I. 2017/516.

[^f00044]: Section 490 was amended by S.I. 2016/649 and 2017/516.

[^f00045]: Sections 489A and 489B were inserted by S.I. 2016/649 and amended by S.I. 2017/516. Section 489C was inserted by S.I. 2017/516.

[^f00046]: Section 494ZA was inserted by S.I. 2017/516.

[^f00047]: Section 1221 was amended by S.I. 2007/3494.

[^f00048]: Schedule 10 was amended by S.I. 2016/649.

[^f00049]: S.I. 2008/565, amended by S.I. 2013/472, 2014/1815 and 2015/575.

[^f00050]: 1969 c. 24 (N.I.). Section 1A was inserted into the Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24), and that Act was renamed, by section 8 of the Credit Unions and Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (c. 16 (N.I.)).

[^f00051]: Chapter 4A was inserted by S.I. 2013/1970 and amended by S.I. 2015/980 and 2016/1245.

[^f00052]: Paragraph 1A of Schedule 7 to S.I. 2008/410 was inserted by S.I. 2013/1970.

[^f00053]: 1965 c. 12. The Act was repealed by the Co-operative and Community Benefit Societies Act 2014 (c. 14).

[^f00054]: 2014 c. 14.

[^f00055]: Section 486 was amended by S.I. 2016/649 and 2017/516.

[^f00056]: Section 487 was amended by S.I. 2016/649 and 2017/516.

[^f00057]: Section 494ZA was inserted by S.I. 2017/516.

[^f00058]: Section 496 was substituted by S.I. 2015/980 and amended by S.I. 2016/649.

[^f00059]: 2006 c. 46. Sections 508 and 509 were amended by S.I. 2016/649.

[^f00060]: A company registered in England and Wales with number 02486368.

[^f00061]: 1968 c. 55. The Act was partially repealed by the Friendly Societies Act 1974 (c. 46) and S.I. 2001/2617, and was wholly repealed by the Co-operative and Community Benefit Societies Act 2014 (c. 14).

[^f00062]: 2015 c. 26. Section 30(3) was amended by section 19 of the Enterprise Act 2016 (c. 12).

[^f00063]: OJ No L 157, 09.06.06, p.87, last amended by Directive 2014/56/EU (OJ No L 158, 27.05.14, p. 196).

[^f00064]: OJ No L 158, 27.05.14, p. 77.

[^f00065]: 2006 c. 46. Section 396 was amended by S.I. 2013/3008 and 2015/980.

[^f00066]: S.I. 2008/565, amended by S.I. 2013/472, 2014/1815 and 2015/575.

[^f00067]: Section 404 was amended by S.I. 2015/980.

[^f00068]: 1969 c. 24 (N.I.).

[^f00069]: S.I. 2008/1911; relevant amending instruments are S.I. 2009/1804, 2011/1043, 2012/1741, 2014/1815 and 2016/575.

[^f00070]: OJ No L 182, 29.06.13, p. 19, last amended by Council Directive 2014/102/EU (OJ No L 334, 21.11.14, p. 86.

[^f00071]: OJ No L 176, 27.06.13, p. 1.

[^f00072]: OJ No L 176, 27.06.2013, p. 338, last amended by Directive 2014/59/EU (OJ No L 173, 12.06.14, p. 190).

[^f00073]: OJ No L 374, 31.12.91, p. 7, last amended by Directive 2006/46/EC (OJ No L 224, 16.08.06, p. 1).

[^f00074]: OJ No L 157, 09.06.06, p.87, last amended by Directive 2014/56/EU (OJ No L 158, 27.05.14, p. 196).

[^f00075]: Section 102A was substituted by S.I. 2005/1433 and amended by S.I. 2015/1755.

[^f00076]: OJ No L 176, 27.06.13, p. 1.

[^f00077]: OJ No L 176, 27.06.2013, p. 338, last amended by Directive 2014/59/EU (OJ No L 173, 12.06.14, p. 190).

[^f00078]: Section 103 was substituted by S.I. 2005/1433 and amended by paragraphs 1 and 11 of Schedule 15 to the Companies Act 2006 (c. 46). There are other amendments but none is relevant.

[^f00079]: OJ No L 145, 30.04.2004, p. 1, last amended by Directive 2010/78/EU (OJ No L 331, 15.12.10, p. 120).

[^f00080]: A company registered in England and Wales with number 02486368.

[^f00081]: Section 102A was substituted by S.I. 2005/1433 and amended by S.I. 2015/1755.

[^f00082]: Section 103 was substituted by S.I. 2005/1433 and amended by paragraphs 1 and 11 of Schedule 15 to the Companies Act 2006 (c. 46). There are other amendments but none is relevant.

[^f00083]: OJ No L 145, 30.04.2004, p. 1, last amended by Directive 2010/78/EU (OJ No L 331, 15.12.10, p. 120).

[^f00084]: OJ No L 158, 27.05.14, p. 77.

[^f00085]: A company registered in England and Wales with number 02486368.

[^f00086]: 2015 c. 26. Section 30(3) was amended by section 19 of the Enterprise Act 2016 (c. 12).

[^f00087]: OJ No L 157, 09.06.06, p.87, last amended by Directive 2014/56/EU (OJ No L 158, 27.05.14, p. 196).