Hard Brexit Impact Analysis

Page 46 of 106 Category If no agreement is reached: Consequence EU Document Finance statutory audits REGISTRATION OF THIRD-COUNTRY AUDITORS AND AUDIT ENTITIES: As of the withdrawal date, United Kingdom auditors or United Kingdom audit entities registered in accordance with Article 45 of the Statutory Audit Directive will in principle be subject to the systems of public oversight, quality assurance and investigation and penalties of the Member State of registration (cf. Article 45(3) of the Statutory Audit Directive). WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT Finance statutory audits As of the withdrawal date Statutory audit of consolidated accounts of undertakings in the EU that have subsidiaries in the United Kingdom: In accordance with Article 27 (on statutory audits of consolidated financial statements) of the Statutory Audit Directive, the statutory auditor or audit firm approved in a Member State acting as group auditor of an undertaking in the EU will need to take into account, in respect of the audit of that undertaking's subsidiaries in the United Kingdom, that the relevant United Kingdom auditor or United Kingdom audit entity will be considered as third-country auditor or third-country audit entity for the purpose of the requirements of that Article (e.g. the audit work of the United Kingdom auditor or United Kingdom audit entity will be subject to evaluation and review by the group auditor). WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF STATUTORY AUDIT