Companies Act 2014 section 1569

Derogation from section 1568 in exceptional cases

Section 1569 allows the Supervisory Authority, in exceptional circumstances, to permit a statutory auditor or audit firm to transfer audit working papers and other documents directly to a competent authority in a non-EU country, subject to five strict conditions being met.

• A direct transfer of audit working papers to a third-country competent authority may only be permitted by the Supervisory Authority in exceptional cases, and only where that authority has initiated an investigation.
• Any such transfer must not conflict with the auditor's or audit firm's existing obligations regarding the transfer of audit documentation to the Supervisory Authority itself.
• Reciprocal working arrangements must be in place with the third-country authority, giving the Supervisory Authority equivalent direct access to audit working papers held by audit entities in that country.
• The third-country authority must notify the Supervisory Authority in advance of each direct request for information, including its reasons, and conditions similar to those set out in section 1568 regarding data protection and professional secrecy must also be satisfied.