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Registration of Third Country Auditors

The EU Statutory Audit Directive (the Directive 2006/43/EC (as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014)) provides for minimum regulatory requirements regarding statutory audits of EU/EEA companies. In addition, the Directive 2006/43/EC provides that, in respect of companies registered outside the EU/EEA and listed on EU regulated markets, third country auditors/audit entities auditing such companies are:

i. required to meet certain criteria; and

ii. to be registered in those EU/EEA member States in which such companies’ securities are listed.

The Directive 2006/43/EC further provides that, where a third country auditor or audit entity does not satisfy the above requirements, any audit report issued will not have legal validity in the EU.

Article 45 of the Directive 2006/43/EC sets out the regulatory requirements for the registration of third country auditors/audit entities, for continuing oversight, including the external monitoring of the quality of their audit work, and for investigations and sanctions.

Article 46 of the Directive 2006/43/EC allows Member States to derogate from these requirements where the third country auditor/audit entity is subject to a system of public oversight, inspections and investigations which the European Commission has recognised as equivalent, or where the third country auditor/audit entity is within transitional arrangements adopted by the European Commission.

Subsequent to the Directive 2006/43/EC having been adopted by the EU, the EU Commission has issued Decision 2008/627/EC and Decision 2011/30/EU(amended by Decision 2013/288/EU).

The effect of Decision (2011/30/EU), amended by Decision 2013/228/EU, is to:

• provide a transitional period for auditors with relevant audit clients from certain specified third countries from the requirements of Article 45, on the condition that they provide certain information to European Oversight Bodies; and

• establish the equivalence of the systems of public supervision, the quality assurance systems and the regulations applying to investigations and sanctions of certain third countries for auditors/auditor entities.

In addition, the effect of the transitional period under Decision 2011/30/EU (amended by Commission Decision 2013/288/EU) is that, subject to providing certain specified information to relevant EU authorities, auditors and audit entities from the relevant countries may continue to issue valid audit reports in the EU notwithstanding that the countries concerned have not yet been determined as being equivalent in the context of Article 45 of the Directive.

With its Decision 2011/30/EU of 19 January 2011, amended by Decision 2013/288/EU, the European Commission decided on a further transitional period to financial years, beginning in the period between 2 July 2010 and 31 July 2015 to third country auditors/audit entities issuing audit reports, regarding the annual or consolidated accounts of companies incorporated in any of the third countries listed below:


New Zealand

Cayman Islands







Auditors/Audit Entities with audit clients in third countries not listed above must apply for full registration with IAASA by completing application Form B and all related annexes. 


Equivalent Countries

In its Decision 2011/30/EU, amended by Decision 2013/288/EU, the European Commission deemed that the public oversight, quality assurance, investigation and penalty systems of auditors and audit entities from the following third countries are equivalent to the public oversight, quality assurance, investigation and penalty systems for auditors and audit entities of the member states, in relation to audit reports concerning the annual or consolidated accounts for the financial years starting from 2 July 2010.

Auditors/audit entities with relevant audit clients in these third countries must apply to IAASA for full registration and complete application Form B and all related annexes:




South Africa


South Korea




The United States of America*

Abu Dhabi Isle of Man
Brazil Jersey
Dubai International Financial Centre   Malaysia
Guernsey Taiwan
Indonesia Thailand

*Equivalence will cease to apply on 31 July 2016.

(as per http://www.irishstatutebook.ie/eli/2014/si/555/made/en/print   “Provision is made, as set out in Commission Decision 2013/281/EU, for equivalence being specified in relation to the United States of America for a limited period of time, from 1 August 2012 to 31 July 2016”