Hard Brexit Impact Analysis

Page 45 of 106 Category If no agreement is reached: Consequence EU Document Finance statutory audits ENTITLEMENT TO CARRY OUT STATUTORY AUDITS IN THE EU: As of the withdrawal date, Audit entities approved by the United Kingdom (United Kingdom audit entities) will be considered third country audit entities and will no longer be considered audit firms for the purpose of the Statutory Audit Directive. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT Finance statutory audits ENTITLEMENT TO CARRY OUT STATUTORY AUDITS IN THE EU: As of the withdrawal date, Neither United Kingdom auditors nor United Kingdom audit entities will be entitled to carry out statutory audits required by the law of a Member State in accordance with the Statutory Audit Directive. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT Finance statutory audits ENTITLEMENT TO CARRY OUT STATUTORY AUDITS IN THE EU: before the withdrawal date an audit firm approved in a Member State (EU 27) should carefully examine whether it will continue, as of the withdrawal date, complying with the conditions set out in Article 3(4) of the Statutory Audit Directive, in particular in relation to voting rights and members of the administrative or management body of the audit firm. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT Finance statutory audits REGISTRATION OF THIRD-COUNTRY AUDITORS AND AUDIT ENTITIES: As of the withdrawal date, a United Kingdom auditor or United Kingdom audit entity providing an audit report concerning the annual or consolidated accounts of a company incorporated outside the EU whose transferable securities are admitted to trading on a regulated market of an EU Member State will have to be registered in that Member State as third country auditor or third country audit firm, in accordance with Article 45 of the Statutory Audit Directive. Failing such registration, any such audit report will have no legal effect in the Member State concerned. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT