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  Registration of third country auditors
 
Background
 

Article 45 of the EU Statutory Audit Directive (“Directive 2006/43/EC”) requires that statutory audit entities and auditors from third countries providing audit services to companies incorporated outside the EU/EEA whose transferable securities are admitted to trading on a regulated market in the EU/EEA should be entered on a public register, and subject to the systems of public oversight, quality assurance, investigation and penalties of a Member State.

Article 46 of Directive 2006/43/EC allows Member States to derogate from these requirements where the third country audit entity is subject to a system of public oversight, quality assurance, investigations and penalties which the European Commission has recognized as equivalent.

In view of further assessments regarding the systems of public oversight, quality assurance, investigations and penalties of third countries, the Commission Decision 2008/627/EC of 29 July 2008 exempts for a transitional period certain third country audit entities from the requirements of Article 45, on the condition that they provide relevant Members States with specific information.

The transitional period applies in respect of audits of annual accounts for financial years starting between 2 July 2010 and 31 July 2018, and is applicable to the third country audit entities whose "home country" is one of the following: Bermuda, Cayman Islands, Egypt and Russia.

This list of third country audit entities has been updated by the European Commission on 25 July 2016 (Implementing Decision 2016/1223/EU).

The third countries whose public oversight, quality assurance, investigation and penalty systems for auditors and audit entities have been considered according to European requirements and that have been granted equivalence status are:

o Australia, Canada, China, Croatia, Japan, Singapore, South Africa, South Korea and Switzerland (for audit activities concerning the annual and consolidated accounts for financial years starting from 2 July 2010; Decision 2011/30/EU)

o Abu Dhabi, Brazil, Dubai International Financial Center, Guernsey, Ile of Man, Indonesia, Jersey, Malaysia, Taiwan and Thailand (for audit activities concerning the annual and consolidated accounts for financial years starting from 1 August 2012; Implementing Decision 2013/288/EU)

o Mauritius, New Zealand and Turkey (for audit activities concerning the annual and consolidated accounts for financial years starting from 1 August 2016, Implementing Decision 2016/1223/EU)

o United States of America, until 31 July 2022 (Implementing Decision 2016/1155/EU)

 
Procedure to be taken by third country auditors and audit entities
 

EU auditor oversight bodies, with the support of the European Commission, recognise the importance of putting in place practical arrangements for third country audit firms that are not over-burdensome and follow as far as possible a common approach across the EU. To this end, the members of the European Group of Auditors' Oversight Bodies (EGAOB) have worked together with the objective that third country audit entities will be able to use application forms and guidance material that is as similar as national regulatory systems permit.

The Member States :

- will work closely together in considering applications for registration to minimise the chance that different decisions on registration will be taken in different Member States. However, registration remains necessary in each Member State where a non-EU company's securities are admitted to trading on a regulated market;

- will, in the longer term, work closely together, and with third-country audit regulators, to minimise overlapping or duplicative regulatory requirements, for example on external inspections of third country audit entities.

 

   • Who must register as Third Country Auditor in France?

An audit entity must register if it audits the annual or consolidated accounts of a company incorporated outside the European Union/European Economic Area whose transferable securities are admitted to trading on a regulated market in France.

This refers to an “issuer” as defined in Article 2 (1) (d) of Directive 2004/109/EC, except when the company is an issuer exclusively of debt securities admitted to trading on a regulated market in France within the meaning of Article 2(1)(b) of Directive 2004/109/EC, the denomination per unit of which is at least EUR 50 000 or, in case of debt securities denominated in another currency, equivalent, at the date of issue, to at least EUR 50 000.

   • Exemption from registration

By decision of the High Council on November 30, 2017, Swiss statutory auditors approved in Switzerland are exempted from the registration requirement in France as long as the conditions laid down in Article L. 822-1-6 of the French Commercial Code (reciprocity for French auditors in Switzerland and equivalence of the Swiss public oversight system by the European Commission) will be respected.

   • How To Apply?

To apply for registration, a third country audit entity must complete and submit the following forms, including all applicable annexes indicated in the forms:

   - Form A can only be used by a third country audit entity whose “home country” is one of the third countries to which the European Commission has granted a transitional period;

   - Form B must be used by all other applicants.

A third country audit entity that needs to register in more than one Member State will still have to apply separately for each registration.

The relevant forms may be downloaded from the H3C website. Applicants are required to complete the forms and send them by post to the “Haut conseil du commissariat aux comptes”

Registration
10 rue Auber - 75009 PARIS
Reception : +33 1 44 51 09 36
Email : inscription@h3c.org

There is no registration fee.

  Download (last change : June 2013)
 

Formulaire A :

     • Form A (FR)
     • Form A (FR) – annexes
     • Form A (FR) - FAQ


Formulaire B :

     • Form B (FR)
     • Form B (FR) - annexes
     • Form B (FR) - FAQ

   
  Last change : 17 June 2016