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Hi Sir, when I read F8 acca text book of BPP, I see those sentences
“The regulatory body should have rules to ensure that those eligible for appointment as a company auditor are either:
• Individuals holding an appropriate qualification, or
• Firms controlled by qualified persons”However, when i search the law on ICAEW website, it says that “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 a RSB such as the ICAEW” and “A registered auditor is a firm that undertakes regulated audit work and that is registered with a recognised supervisory body (RSB) such as the ACCA, ICAEW.”
So I see that only firms can become auditor for company, but the textbook of acca says that individuals can also become auditor.
Can you clarify this issue for me?In the UK, an individual can only sign an audit report if they hold a practising certificate (for which they must be qualified) AND the firm in which they practice is registered.
https://www.accaglobal.com/us/en/member/sectors/smp/practising-certificates-and-licences/firm_s-auditing-certificates.htmlSo the textbook is wrong, right? It said that individuals can be eligible for appointment.
“The regulatory body should have rules to ensure that those eligible for appointment as a company auditor are either:
• Individuals holding an appropriate qualification, or
• Firms controlled by qualified persons”Your ICAEW quote is incomplete as it mentions only firms. This is from CA06 s.1212(1):
An individual OR firm is eligible for appointment as a statutory auditor if the individual or firm:
(a) is a member of a recognised supervisory body, and
(b) is eligible for appointment under the rules of that body.
Don’t get bogged down in the details here – AA is a global exam based on IASs – so legislation in any one country can only be illustrative of the principles – in this case the point is that auditors have to be qualified and regulated.
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