1461. (1) In this Part and Schedules 19 and 20—

"2010 Audits Regulations" means the European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010 (S.I. No. 220 of 2010) revoked by Regulation 2(1) of the 2016 Audits Regulations;

"2016 Audits Regulations" means the European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016 (S.I. No. 312 of 2016) revoked by section 3(6) of the Companies (Statutory Audits) Act 2018;

"AAPA report" shall be read in accordance with section 930B(1);

"additional report to the audit committee" means the report submitted to the audit committee of a public-interest entity by the statutory auditor or audit firm carrying out statutory audits as referred to in Article 11 of Regulation (EU) No 537/2014;

"approved", in relation to a statutory auditor or audit firm, means approved under this Part;

"aptitude test" means an aptitude test referred to in section 1476(1);

"audit committee", in relation to a public-interest entity, means the audit committee established for the entity under section 1551;

"Audit Directive" means Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006⁵ on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC, as amended by Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014⁶ amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts;

"audit working papers", in relation to a statutory auditor or audit firm, means material (whether in the form of data stored on paper, film, electronic media or other media or otherwise) prepared by or for, or obtained by the statutory auditor or audit firm in connection with, the performance of the audit concerned, and includes—

(a) the record of audit procedures performed,

(b) relevant audit evidence obtained, and

(c) conclusions reached,

and a reference to audit working papers in relation to a Member State auditor or audit firm, or a third-country auditor or third-country audit entity, shall be read accordingly;

"auditing standards" means the standards adopted by the Supervisory Authority under section 1526 in accordance with which statutory audits shall be carried out;

"client" has the meaning assigned to it by section 934(1);

"Commission" means Commission of the European Union;

"counterpart authority" shall be construed in accordance with section 1553;

"disciplinary committee" has the meaning assigned to it by section 900;

"financial year"—

(a) in relation to the Supervisory Authority and an audited undertaking, shall be read in accordance with section 288, and

(b) in relation to a statutory auditor or audit firm, means any period in respect of which a profit and loss account or income statement is prepared by the auditor or audit firm for income tax or other business purposes, whether that period is of a year’s duration or not;

"firm" includes a body corporate;

"Member State" means a Member State of the European Union or an EEA state;

"Member State audit firm" means an audit entity approved in accordance with the Audit Directive by the counterpart authority of another Member State to carry out audits of accounts or consolidated accounts as required by European Union law;

"Member State auditor" means an auditor approved in accordance with the Audit Directive by the counterpart authority of another Member State to carry out audits of accounts or consolidated accounts as required by European Union law;

"penalty" includes a sanction and a measure;

"public-interest entities" means undertakings that—

(a) have transferable securities admitted to trading on a regulated market of any Member State,

(b) are credit institutions,

(c) are insurance undertakings, or

(d) are undertakings that are otherwise designated, by or under any other enactment, to be entities referred to in point (d) of Article 2(13) of the Audit Directive;

"public register" shall be read in accordance with section 1484;

"recognised accountancy body" has the meaning assigned to it by section 900;

"Regulation (EU) No 537/2014" means Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014⁷ on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC;

"relevant contravention" has the meaning assigned to it by section 900;

"relevant provisions" has the meaning assigned to it by section 900;

"relevant sanction" (except in Chapter 9) has the meaning assigned to it by section 900;

"standards" means those standards, as defined in section 900, of a prescribed accountancy body which is a recognised accountancy body;

"statutory audit" means an audit of entity financial statements or group financial statements in so far as—

(a) required by European Union law, or

(b) required by national law as regards small companies;

"statutory audit firm" means—

(a) an audit firm which is approved in accordance with this Part to carry out statutory audits, or

(b) an audit firm which is registered in accordance with section 1465 to carry out statutory audits;

"statutory auditor" means an individual who is approved in accordance with this Part to carry out statutory audits;

"third country" means a country or territory that is not a Member State or part of a Member State;

"third-country competent authority" means an authority in a third country with responsibilities, as respects auditors and audit entities in that country, equivalent to those of the Supervisory Authority.

(2) A reference in this Part or in Schedule 19 or 20 to a registered third-country auditor or third-country audit entity is a reference to a third-country auditor or third-country audit entity registered under Chapter 21.

(3) A word or expression that is used in this Part or in Schedule 19 or 20 and is also used in the Audit Directive shall have in this Part and that Schedule the same meaning as it has in the Audit Directive.

(4) A word or expression that is used in this Part or in Schedule 19 or 20 and is also used in Regulation (EU) No 537/2014 shall have in this Part and that Schedule the same meaning as it has in that Regulation.]