Draft UK Audit Regulations for a no deal Brexit

In readiness for a no deal Brexit, a draft set of Audit Regulations has been prepared. These are indicative, for the UK only and will apply with minor changes from the date of actual exit.

Principal changes evident in draft UK Audit Regulations

  • Amended qualification criteria to reflect individual qualification pertaining to EEA qualification.
  • Ownership, control and registration criteria will cease to operate on 31.12.2020.
  • Relationships with the EU27 competent authorities are redefined as third country relationships. This affects rules around the sharing of working papers.
  • All references to Irish legislation and rules applicable to Ireland only are removed.

Audit Regulations for Ireland

At this point separate regulations have not been drafted for Ireland. The joint regulations for Ireland and the UK are in the process of being updated for the Irish Companies Act 2018. It is intended these will be issued later this year depending on the timing of Brexit.

The UK has amended its rules in the event of Brexit deal or no deal to continue recognising qualifications on the current basis until 31.12.2020. No similar provision has yet been made by EU27 countries in the event of a no deal. Therefore the audit rights in EU27 countries cannot be taken as continuing. For clarification, please check with the relevant competent authorities.

As the political position for Brexit continues to be fluid, we will continue to work with BEIS, the FRC and the other RSBs to keep you informed during this time.

Access the draft regulations