ICAEW.com works better with JavaScript enabled.

Check and monitor your firm’s audit eligibility

Use this tool to check if your firm is still eligible to carry out audit work following recent Audit Regulations changes on audit firm control. You should also use this tool if you are considering making changes to your firm structure.
q0

Is your firm eligible to be audit registered?

Please answer these questions to help you check and monitor your firm's audit eligibility.

You will need to know:

  • details of the firm's shareholders, members, partners, directors and/or principals; and
  • whether they hold the Audit Qualification (AQ).

ICAEW members can check this by emailing AQ@icaew.com. (Members of other professional bodies should contact their respective body.)

q1
Question 1

Are you a sole trader or the sole shareholder and director of a limited company firm?

q2-1
Question 2

Do you hold the Audit Qualification (AQ)?

q2-2
Question 2

Are the majority of voting rights held by individuals that hold the AQ, and/or audit-registered firms?

'Majority' definition: In the context of regulation 2.03 'majority' of the voting rights means more than 50% unless the firm's constitution specifies a higher percentage of these rights is required for decision making, in which case, 'majority' shall be taken to mean that specified percentage or more.

'Voting rights' definition: The rights to vote at meetings of principals or shareholders of a firm on all matters that direct the firm's overall policy or alter its constitution.

q3-1
Question 3

Is the firm a limited company that has adopted the model articles?

q4-1
Question 4

Do any of your firm's governance documents or board/committee terms of reference specify decisions that require more than a simple majority?

Read our FAQs for further help and guidance

Governance document examples: LLP agreement, partnership agreement, articles, investment agreement.

'Decisions' definition: Decisions by shareholders, directors, LLP members, partners or members.

'Simple majority' definition: More than 50%.

q4-2
Question 4

Can you confirm that 75% or more of the shareholders' voting rights are held by audit-qualified individuals and/or registered auditors when passing special resolutions?

Read our FAQs for further help and guidance

q5-1
Question 5

Do any of those matters alter the firm's constitution and/or direct the overall policy of the firm?

Read our FAQs for further help and guidance regarding constitutional and policy decisions.

q6-1
Question 6

Are sufficient voting rights held by audit-qualfied persons to make decisions that require a super-majority?

Read our FAQs for further help and guidance

'Super-majority' definition: A super-majority is approval by more than a simple majority (for example, 75% approval, 90% approval etc.).

end1
Your result

Based on the answers provided:

Your firm is eligible

You must keep your firm's audit eligibility under review, particularly when personnel and those holding voting rights change.

Monitoring eligibility
end2
Your result

Based on the answers provided:

Your firm is not eligible

In order to gain audit rights in the UK, you need to hold the Audit Qualification, an ICAEW practising certificate and responsible individual status.

More about gaining audit rights
end3
Your result

Based on the answers provided:

Your firm may be ineligible

Your firm may be ineligibile under the updated requirements of Audit Regulation 2.03. You must take immediate action to resolve this.

Regulations and guidance Contact support

Monitoring your firm’s eligibility

Your firm will need to monitor the qualifications held by the people who hold voting rights to ensure audit-qualified persons hold a majority of voting rights to vote on all matters that direct the firm's overall policy or affect its constitution.

This is particularly relevant where the people with voting rights change over time (eg, as partners join and leave a firm).

You must notify ICAEW of changes to the holders of a firm's voting rights using the appropriate Standing Data Change form and within 10 business days.

If a change renders a firm ineligible, a short-term dispensation may be available to allow the firm's audit registration while the ineligibility is resolved. The firm must apply by emailing auditregistration@icaew.com for a dispensation within 10 business days. The maximum period for any such dispensation is 90 days from when ineligibility first arose. This dispensation cannot be extended in any circumstance.

The output of this tool is for guidance purposes only and must not be relied upon as confirmation of audit eligibility. Responsibility for assessing and maintaining compliance with the ICAEW Audit Regulations remains with the firm. Firms should refer to the current Audit Regulations and contact ICAEW where clarification is required.

Related guidance

Pin
Audit Regulations and Guidance

Regulations and guidance for those working in the regulated area of audit in the UK, Ireland and the Crown Dependencies.

Find out more
Lightbulb
Standing data change forms for regulated firms

Please use these forms to notify us of changes to your practice.

Find out more