Can individuals become a company auditor?

Ssang7y ago

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?

KimTutor7y ago#1

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.html

Ssang7y ago#2

So 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”

KimTutor7y ago#3

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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