Companies Act 2014 section 1542

Organisation of work of statutory auditors and audit firms

Section 1542 sets out how audit firms and statutory auditors must organise and resource their statutory audit work, including the designation of key audit partners, record-keeping of contraventions, and documentation of external advice.

• An audit firm must designate at least one key audit partner who is actively involved in the statutory audit, ensuring that partner is selected primarily on the basis of audit quality, independence and competence and is given sufficient resources and capable personnel.
• A statutory auditor must devote sufficient time and assign sufficient resources to each audit engagement to carry out their duties appropriately.
• Both statutory auditors and audit firms must keep records of any contraventions of the relevant provisions, document the consequences of those contraventions including remedial measures and changes to internal quality control, and prepare an annual report summarising those measures.
• Any requests made to external experts and the advice received must be documented by the statutory auditor or audit firm.