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What information is needed in respect of the “good repute” requirement?

Article 45 (5) (b) and (c) of Directive 2006/43/EC refer to the requirement of good repute according to Article 4 of this Directive in relation to members of the administrative or management body of the third-country audit entity as well as the third-country auditors.

 

Registration as a Third Country Audit Entity with IAASA under the European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010 requires that the registering firms are of good repute. In addition,

  • Members of the administrative or management board of the firm, as indicated on Annex 4 of Form B must be of good repute; and
  • Those individuals indicated on Annex 5 of Form B as designated by the firm as being primarily responsible for carrying out or signing on behalf of the firm an audit report on a relevant audit client that is indicated on Annex 6 of Form B must also be of good repute.

Each Third Country Audit Firm must complete Form B-7 Good Repute – Entity. This form must be completed and signed by a member of the administrative or management board of the firm (i.e. the individual must be a partner, director or a Chief Executive Officer)

All relevant individuals (i.e. members of the Administrative or Management Board of the firm and individuals who are designated by the firm as being primarily responsible for carrying out or signing an audit report on a relevant audit client on behalf of the firm) must complete and sign Form B-8 – Good Repute Form – Individual.