This section explains what constitutes regulated audit work , what is meant by the term 'registered auditor' and what a firm needs to do to become a registered auditor.
- What is regulated audit work?
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This is work that is reserved by law to a 'registered auditor'. Generally it is audit work in relation to a company, but other work - and in relation to other entities - is also reserved to registered auditors. For a full list of work and other entities, see the definition of 'audit' in ICAEW's Audit Regulations and Guidance.
- What is a registered auditor?
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A registered auditor is a firm that undertakes regulated audit work and that is registered with a recognised supervisory body (RSB) such as ICAEW. They may also be called a statutory auditor.
- When does a firm need to become a registered auditor?
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Under section 1212 of the Companies Act 2006, a firm can only accept appointment as an auditor if it is a registered auditor under the rules of an RSB such as ICAEW.
A firm must also be a registered auditor if it audits any organisation which is required by statute or regulation to appoint - as its auditor - a firm eligible to carry out company audits.
Banks, building societies, clubs and associations subject to the Friendly Societies Act or Industrial and Provident Act have to be audited by registered auditors. Some unincorporated charities, clubs or voluntary organisations may require their auditor to be eligible to act as a registered auditor. The specific requirement may be written into the entity's constitution or may be a condition of membership of some other body.
- Does my firm meet the criteria for becoming a registered auditor?
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We have created a flowchart to help you understand whether your firm is eligible to become a registered auditor.
- How does a firm become a registered auditor?
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If your firm wants to become a registered auditor, it will need to:
Within a firm of registered auditors, the individual(s) who sign(s) company audit reports must:
- Hold an audit qualification, which normally means satisfying special training requirements; contact postqual@icaew.com or call + 44 (0)1908 248 028 for more information
- Be nominated by the firm as a responsible individual.
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