Prudential Regulation Authority Rulebook

8.1

This Chapter applies in relation to annual reports and accounts with an accounting reference date on or after 1 November 2016 but 8.3(2) and (3) and 8.3A apply only in relation to annual reports and accounts with an accounting reference date on or after 31 December 2018.

8.2

Unless otherwise stated, this Chapter applies to an auditor of a firm that:

1. (1) is a UK bank or building society;
2. (2) is not itself the subsidiary undertaking of an undertaking that is not an UK undertaking; and
3. (3) meets at least one of the following criteria:
1. (a) it has an individual balance sheet total greater than £50,000,000,000; or
2. (b) it is a member of a group that has a consolidated balance sheet total greater than £50,000,000,000,

as at the last accounting reference date.

8.3

An auditor must provide annually a written report to the PRA in relation to:

1. (1) a firm’s audited annual report and accounts;
2. (2) where a firm has an ultimate parent undertaking, the audited annual report and accounts of the ultimate parent undertaking; and
3. (3) where a firm is a ring-fenced body and there is a ring-fenced holding company in relation to the firm, the audited annual report and accounts of the ring-fenced holding company.

8.3A

But an auditor is not required to report in relation to the audited annual report and accounts of the firm’s ultimate parent undertaking if the auditor is not also the auditor of the ultimate parent undertaking.

8.4

The report in 8.3 must:

1. (1) be provided within 120 days beginning with the relevant accounting reference date;
2. (2) provide information about key judgment areas, including:
1. (a) matters of valuation;
2. (b) quality of earnings;
3. (c) key accounting judgments; and
4. (d) the quality of the systems and controls relevant to the preparation of the annual report and accounts; and
3. (3) be prepared with due skill, care and diligence.

8.5

An auditor must consult with the PRA in advance of preparing the report.

8.6

A firm must cooperate with its auditors in preparing the report.