Companies Act 2014 section 1622

Irregularities

Section 1622 extends the EU rules on reporting irregularities discovered during statutory audits of public-interest entities so that those same rules now also apply when a statutory auditor or audit firm carries out assurance of sustainability reporting for a public-interest entity.

• Article 7 of EU Regulation No 537/2014 sets out obligations when auditors discover irregularities during a statutory audit of a public-interest entity.
• Section 1622 applies those same irregularity-reporting obligations to auditors and audit firms carrying out assurance of sustainability reporting for public-interest entities.
• Any reference in Article 7 to carrying out a statutory audit of a public-interest entity must be read as a reference to carrying out sustainability reporting assurance of a public-interest entity.
• Any reference in Article 7 to the audited entity must be read as a reference to the entity whose sustainability reporting is the subject of the assurance engagement.