Companies Act 2014 section 1539

Preparation for statutory audit and assessment of threats to independence

Section 1539 requires a statutory auditor or audit firm to assess and document certain matters before accepting or continuing a statutory audit engagement.

• The auditor must confirm compliance with the independence requirements set out in the Act, including general independence rules and provisions on prohibited relationships.
• Any threats to the auditor's independence must be identified, along with the safeguards put in place to mitigate those threats.
• The auditor must satisfy themselves that they have sufficiently competent staff, adequate time, and the necessary resources to carry out the audit properly.
• Where the engagement is undertaken by an audit firm, the key audit partner must be approved as a statutory auditor in the relevant Member State.