Part 42 of the Companies Act 2006, as amended, together with regulations under that Act, and the Statutory Auditors and Third Country Auditors Regulations 2016 provide the statutory framework for audit regulation in the UK, in accordance with the requirements of the EU Audit Directive (Directive 2006/43), as amended, and the EU Audit Regulation 537/2014. As a part of that framework the Government has delegated to the FRC powers to make binding regulations in specific areas. The FRC has made four legal instruments under those powers.
The Statutory Auditors (Transparency) Instrument 2008 has been superseded by EU Audit Regulation 537/2014 Article 13. This instrument applies only to financial years commencing on or before 16 June 2016. For financial years commencing on or after 17 June 2016, the new transparency reporting requirements as set out in Article 13 are applicable.