Session 2013 - 14
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1405

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Tuesday 10 December 2013

 

Consideration of Bill


 

Local Audit and Accountability Bill [Lords]

 

Secretary Eric Pickles

 

1

 

Clause  8,  page  6,  line  43,  at end insert—

 

‘(ba)    

specifies the period for which the local auditor has been appointed,’.

 

Secretary Eric Pickles

 

2

 

Clause  44,  page  34,  line  19,  at end insert—

 

‘(2A)    

References in this Act to provision made under it include provision made under

 

Part 42 of the Companies Act 2006 as it has effect by virtue of Schedule 5.’.

 

Secretary Eric Pickles

 

3

 

Schedule  2,  page  42,  line  36,  leave out paragraphs (a) and (b) and insert ‘that is

 

wholly in England’.

 

Secretary Eric Pickles

 

4

 

Schedule  4,  page  47,  line  5,  after ‘authority’, insert ‘other than a health service

 

body’.

 

Secretary Eric Pickles

 

5

 

Schedule  5,  page  58,  line  3,  leave out sub-paragraph (3) and insert—

 

    ‘(3)  

For paragraph 6 (holding of appropriate qualification) substitute—

 

“Holding of appropriate qualification

 

6    (1)  

The body must have rules to the effect that an individual is not

 

eligible for appointment as a local auditor unless the individual—

 

(a)    

holds an appropriate qualification,

 

(b)    

is an EEA auditor who has passed an aptitude test in

 

accordance with sub-paragraph (3), unless an aptitude test

 

is not required (see sub-paragraphs (4) and (5)), or


 
 

Notices of Amendments: 10 December 2013                  

1406

 

Local Audit and Accountability Bill-[Lords], continued

 
 

(c)    

has been authorised to act as a local auditor by the body

 

pursuant to the European Communities (Recognition of

 

Professional Qualifications) Regulations 2007 (SI 2007/

 

2781), and complies with the requirements of those

 

Regulations that apply to a person acting as a local auditor.

 

      (2)  

The body must have rules to the effect that a firm is not eligible for

 

appointment as a local auditor unless—

 

(a)    

each individual responsible for local audit work on behalf

 

of the firm is eligible for appointment as a local auditor, and

 

(b)    

the firm is controlled by qualified persons (see paragraph 7

 

below).

 

      (3)  

The aptitude test—

 

(a)    

must test the individual’s knowledge of subjects—

 

(i)    

that are covered by a recognised professional

 

qualification,

 

(ii)    

that are not covered by the professional

 

qualification already held by that individual, and

 

(iii)    

the knowledge of which is essential for the pursuit

 

of the profession of local auditor;

 

(b)    

may test the individual’s knowledge of rules of

 

professional conduct;

 

(c)    

must not test the individual’s knowledge of any other

 

matters.

 

      (4)  

No aptitude test is required if—

 

(a)    

the individual is to provide services consisting of local

 

audit work on a temporary and occasional basis, or

 

(b)    

the subjects that are covered by a recognised professional

 

qualification and the knowledge of which is essential for

 

the pursuit of the profession of local auditor are covered by

 

the professional qualification already held by the

 

individual.

 

      (5)  

Whether the provision of services is on a temporary and occasional

 

basis is to be assessed on a case by case basis and in particular by

 

reference to its duration, its frequency, its regularity and its

 

continuity.

 

      (6)  

A firm which has ceased to comply with the conditions mentioned

 

in sub-paragraph (2) may be permitted to remain eligible for

 

appointment as a local auditor for a period of not more than three

 

months.”

 

    (3A)  

In paragraph 7 (meaning of control by qualified persons)—

 

(a)    

in sub-paragraph (1) (introductory), for “paragraph 6(1)(b)” substitute

 

“paragraph 6(2)(b)”, and

 

(b)    

in sub-paragraph (2)(b)(i), (requirement for firm to be eligible for

 

appointment as statutory auditor), for “statutory auditor” substitute

 

“local auditor, or as a statutory auditor in accordance with this Part of

 

this Act as it has effect apart from its application by virtue of Schedule

 

5 to the Local Audit and Accountability Act 2013.”’.

 


 
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Revised 11 December 2013