Company auditors
10.—(1)  No person other than an accounting entity may —
(a)knowingly consent to be appointed as auditor for a company; or
(b)knowingly act as an auditor for a company.
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(2)  Without limiting subsection (1)(b), a person acts as an auditor for a company if the person prepares any report required by this Act to be prepared by an auditor of the company.
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(3)  No company or person may appoint an accounting entity as an auditor of a company without obtaining the accounting entity’s prior consent.
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(4)  For the purposes of subsection (3), the consent —
(a)of a public accountant must be in writing signed by the public accountant;
(b)of an accounting firm, or an accounting limited liability partnership, must be in writing signed by at least one partner of the firm or limited liability partnership; and
(c)of an accounting corporation must be in writing signed by at least one director of the corporation.
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(5)  Where an accounting firm is appointed as auditor of the company in the name of the accounting firm, the appointment takes effect and operates as if the partners of the firm at the time of the appointment, who are public accountants at that time, are appointed as auditors of the company.
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(6)  Where an accounting corporation is appointed as auditor of the company in the name of the corporation, the appointment takes effect and operates as if —
(a)the directors of the corporation who are practising as public accountants in the corporation (whether directors at the time the accounting corporation was appointed as auditor or later); and
(b)the employees of the corporation who are practising as public accountants in the corporation (whether employed at the time the accounting corporation was appointed as auditor or later),
are appointed as auditors of the company.
[36/2014]