On 18 August 2022, the FRC published its regulations for the new registration regime for statutory auditors of PIEs. As part of the government’s broader ongoing reform efforts, with a view to restoring trust in audit and governance, and following a number of reviews and consultations since 2018, the Public Interest Entity Auditor Register

Regulations due to come into force on 5 December 2022 will empower the FRC to establish and maintain a published PIE Auditor Register.

From 5 December 2022 onward, all audit firms and responsible individuals undertaking statutory work for PIEs must be registered on the PIE Auditor Register.

A transition period will be observed, under which firms that are currently auditing PIEs must submit their applications for registration to the FRC from 5 September 2022.

The FRC currently relies on the ICAEW and the Association of Chartered Certified Accountants, as recognised supervisory bodies, to approve and monitor PIE auditors. However, following the FRC’s anticipated transition to ARGA, it will be directly responsible for approving PIE auditor firms, and for the oversight and maintenance of the PIE Auditor Register.

Next steps

It is important for audit firms and their responsible individuals to comply with the new incoming registration requirements within the transitional period and to ensure their timely compliance with any ongoing notification obligations (for example, relevant changes, such as being appointed to undertake the statutory audit work of a PIE, or a change in the firm’s or its registered individuals’ contact details).

Further information

Click here for a copy of the Public Interest Entity (PIE) Auditor Registration Regulations.
Click here for a copy of the PIE auditor registration guidance for transitional applications.

This article was produced in association with White & Case UK’s Public Company Advisory team. Read their original alert here.