Accountancy and Audit

Department for Business, Energy and Industrial Strategy written question – answered on 2nd August 2019.

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Photo of Chuka Umunna Chuka Umunna Liberal Democrat, Streatham

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Guidance on how to prepare for Brexit if there's no deal, published by his Department, what parts of the plan for accounting and audit in the event that the UK leaves the EU without a deal have been implemented.

Photo of Kelly Tolhurst Kelly Tolhurst Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

If the UK leaves the EU without a withdrawal agreement, UK registered auditors will be treated largely as third country auditors in the EEA. Similarly, UK companies will be treated largely as third country companies for accounting and audit purposes. EEA auditors and EEA companies in the UK will also be treated as third country auditors and third country companies in the UK under changes that will be made effective in part through amendments to UK legislation. However, the UK Government has put in place a framework that will allow some continuing market access for EEA auditors to the UK for a limited period in order to provide continuity for businesses in the period following the UK’s exit.

The Government’s technical notice on accounting and audit if there is no Brexit deal sets out the implications of No Deal for businesses operating across the EU/UK border. Almost all the legislative changes referenced in this guidance have been made via:

- the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019;

- the Accounts and Reports (Amendment) (EU Exit) Regulations 2019;

- the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019.

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