Notification of change of auditor

Sections 522 to 525 of the Companies Act 2006, as amended, set out the requirements on auditors and on companies to send statements and notices to the “appropriate audit authority” when an auditor ceases to hold office. In respect of an audit of a public interest company the appropriate audit authority is the FRC in its capacity as the Competent Authority. Both auditors and companies need to notify the “appropriate audit authority” and there are separate requirements placed on auditors and on companies by this legislation.  

Guidance on the circumstances in which the FRC is the appropriate audit authority, how the notification to the FRC should be made, and what it must cover is provided in the form of: 

Regulation 2 of The Statutory Auditors and Third Country Auditors Regulations (SATCAR) 2016 defines PIEs as entities governed by the law of a Member State whose secure transferable securities (equity and debt) are admitted to trading on a regulated market in the EEA; and credit institutions and insurance undertakings. (The “Flowchart for Auditors” refers to public interest companies (PICs) which, are for the purposes of this requirement the same as public interest entities (PIEs).)

The outgoing auditor is required to notify their Recognised Supervisory Body (RSB) for non-PICs audits. Auditors of non-PICs, including AIMS and Lloyds syndicates, must send copies of their resignation letters to the RSBs (namely ICAEW, ACCA, ICAS, ICAI).

Please send all notifications and queries to