Companies (Auditing and Accounting) Act 2003

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PART 3

Other Measures to Strengthen the Regulation of Auditors

Amendment of section 182 of Act of 1990 (interpretation of Part X).

34.—Section 182 of the Act of 1990 is amended as follows:

(a) in the definition of “public auditor” by substituting “1896 to 1993;” for “1896 to 1993.”;

(b) by inserting the following after the definition of “public auditor”:

“ ‘the Act of 2003’ means the Companies (Auditing and Accounting) Act 2003;

‘the 1993 Regulations’ means the European Communities (Accounts) Regulations 1993 ( S.I. No. 396 of 1993 );

‘the 1992 Regulations’ means the European Communities (Companies: Group Accounts) Regulations 1992 ( S.I. No. 201 of 1992 ).”;

(c) by renumbering that section as section 182(1) and inserting the following:

“(2) For the purposes of sections 205B and 205D, each of the following is considered to be an affiliate of an auditor in a financial year:

(a) if the auditor is a firm—

(i) any other firm where, at any time during the financial year, both firms were under common ownership and control,

(ii) any body corporate in which the auditor, any firm mentioned in subparagraph (i) or (iv) or any body corporate mentioned in subparagraph (iii) or (iv) was, at any time in the financial year, entitled to exercise or control the exercise of 20 per cent or more of the voting rights at a general meeting,

(iii) any body corporate that was, at any time in the financial year, in the same group as a body corporate mentioned in subparagraph (ii),

(iv) any other firm, or body corporate, that because of the use of a common name or corporate identity or the sharing of common professional services could reasonably be considered to be associated with the auditor,

(b) if the auditor is an individual—

(i) any partnership in which the auditor was, at any time in the financial year, a partner,

(ii) any body corporate in which the auditor, any partnership mentioned in subparagraph (i) or any body corporate mentioned in subparagraph (iii) was, at any time in the financial year, entitled to exercise or control the exercise of 20 per cent or more of the voting rights at a general meeting,

(iii) any body corporate that was, at any time in the financial year, in the same group as a body corporate mentioned in subparagraph (ii).

(3) A reference in this Part to group accounts is to be construed as follows:

(a) in accordance with the 1992 Regulations, in the case of an undertaking to which those Regulations apply;

(b) in accordance with the Principal Act, in the case of any other undertaking.”.