5
Co-operation with the PRA and interaction with other duties
5.1
Rule 7.1[4] of the Auditor Part of the PRA Rulebook requires auditors to co-operate with the PRA in the discharge of its functions under any relevant legislation.
Footnotes
- 4. Rule 7.1 was amended in Policy Statement 1/16 ‘Engagement between external auditors and supervisors and commencing the PRA’s disciplinary powers over external auditors and actuaries’ published in January 2016 alongside this supervisory statement; see www.bankofengland.co.uk/pra/Pages/publications/ps/2016/ps116.aspx.
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5.2
The annual written report by auditors does not negate the existing auditors’ duty to notify certain matters to the PRA under Chapter 7 of the Auditors Part of the PRA Rulebook or the auditors’ right and duty to report to the PRA under FSMA.[5]
Footnotes
- 5. See section 342(3) FSMA and Statutory Instrument 2001 No. 2587, FSMA 2000 (Communications by Auditors) Regulations 2001. Written reports by external auditors to the PRA January 2016 7
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5.3
In cases where the auditors undertake a section 166 (s166) FSMA (Reports by skilled persons) engagement for a firm they audit, this will not relieve them from their written reporting obligation. The auditors may make use of the work undertaken for s166 as appropriate but will still owe duty of care to the PRA with respect to the written report.
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5.4
In addition, in situations where the PRA is concerned about areas that are not central to the audit on grounds of the auditor’s assessment of risk of material misstatement, and it is considered to be a proportionate response, the PRA may use the tool of a S166 report, perhaps commissioned from a skilled person other than the auditor, to carry out such work.
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