ICAEW ARF · Chapter 11 · Question 8 of 10
Under the Companies Act 2006, a firm can act as a statutory auditor only if it is registered with, and its audit work is monitored by, a recognised body. ICAEW carries out this role for its member firms. In doing so, which type of body is ICAEW acting as?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A recognised supervisory body
Explanation
A recognised supervisory body (RSB) registers firms as eligible for appointment as statutory auditors and monitors the quality of their audit work, under oversight by the competent authority. A recognised qualifying body (RQB) awards the professional qualification that makes an individual eligible; ICAEW is also an RQB, but that is a different role from registering and monitoring firms. ICAEW's anti-money laundering supervision is also a separate role, and the Registrar of Companies does not register or monitor auditors.
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