Only a firm or individual that is a member of a recognised supervisory body and eligible under that body’s rules can be appointed as a company’s statutory auditor, under section 1212 of the Companies Act 2006. In the UK the four recognised supervisory bodies are ICAEW, ICAS, ACCA and Chartered Accountants Ireland. Inside a registered firm, only a responsible individual, who holds the audit qualification and has been approved by the supervisory body, can be in charge of an audit and sign the report.

What does the law say about who can be an auditor?

Part 42 of the Companies Act 2006 controls who may carry out statutory audits. Section 1209 says its main purposes are to secure that only persons who are properly supervised and appropriately qualified are appointed as statutory auditors, and that their audits are carried out properly, with integrity and with a proper degree of independence.

The central rule is section 1212. An individual or firm is eligible for appointment as a statutory auditor only if it is a member of a recognised supervisory body (RSB) and is eligible for appointment under the rules of that body. Section 1213 then makes it an offence to act as statutory auditor while ineligible, and requires an auditor who becomes ineligible during a term of office to resign immediately and tell the company in writing that the reason is ineligibility. It is a defence to show that the person did not know and had no reason to believe they were ineligible.

Being a chartered or certified accountant is not enough on its own. Plenty of qualified accountants prepare accounts but are not registered for audit, which is one of the distinctions explained in our guide to regulated and unregulated accountants.

Which bodies can register auditors?

A supervisory body, defined in section 1217, is a UK body that maintains and enforces rules on eligibility for appointment as a statutory auditor and on the conduct of statutory audit work. To be recognised it must meet the requirements in Schedule 10 to the Act. The Financial Reporting Council, as the UK competent authority for audit, lists four RSBs:

  • the Association of Chartered Certified Accountants (ACCA);
  • Chartered Accountants Ireland (CAI);
  • the Institute of Chartered Accountants in England and Wales (ICAEW);
  • the Institute of Chartered Accountants of Scotland (ICAS).

The FRC separately lists five recognised qualifying bodies (RQBs), which award the professional qualification needed to audit: ACCA, the Association of International Accountants, ICAEW, CAI and ICAS. A body can award the qualification without supervising firms, which is why the two lists differ.

What does a firm need to become a registered auditor?

ICAEW describes a registered auditor as a firm that undertakes regulated audit work and is registered with an RSB. The UK Audit Regulations and Guidance, which apply to firms registered by ICAEW, ICAS and CAI and were updated with effect from 1 October 2026, set out the conditions. Regulation 2.02 allows the Registration Committee to register a firm only if it is satisfied that:

  • the firm is fit and proper to be appointed;
  • it holds professional indemnity insurance as required by the institute’s PII regulations;
  • it has appointed an audit compliance principal and notified the institute of that person’s name;
  • each responsible individual has been properly designated;
  • a sole practitioner is personally a responsible individual and the audit compliance principal.

Firms with more than one principal, and incorporated sole practices, must also be controlled by qualified persons. Schedule 10 paragraph 7 treats a firm as controlled by qualified persons only if a majority of its members are qualified and, where it has a management board, a majority of that board are qualified (or at least one, where the board has only two members). Regulation 2.03 reflects this by requiring holders of the appropriate qualification or other registered auditors to hold a majority of the voting rights in the firm and in its management board.

If a firm stops meeting these conditions, paragraph 6(3) of Schedule 10 allows it to remain eligible for not more than three months. ICAEW’s October 2026 amendments align its dispensation rule with this, limiting it to no more than 90 days in the relevant cases.

ICAEW also explains that the reserved work is wider than company audits: banks, building societies and bodies under the friendly and industrial and provident societies legislation must be audited by registered auditors, and some charities and clubs require it in their constitution.

What is a responsible individual?

Registration belongs to the firm, but the audit work is led by named people. The Audit Regulations define responsible individuals as those responsible for audit work on behalf of a registered auditor. Under regulation 4.01 the audit compliance principal may designate a principal or employee who:

  1. holds an appropriate qualification (commonly called the audit qualification);
  2. is competent to conduct audit work;
  3. is a fit and proper person;
  4. is allowed to sign audit reports in their own name on behalf of the firm;
  5. can show they meet the continuing professional development requirements of their institute.

Regulation 4.02 adds that, at a firm registered by ICAEW or ICAS, the individual must hold a practising certificate from an institute or ACCA, or be granted audit affiliate status. Regulation 4.03 bars consultants and subcontractors, and regulation 4.04 states that only responsible individuals can be responsible for an audit and sign an audit report. The designation is not effective until the Registration Committee approves it under regulation 4.05. A responsible individual does not have to be a partner or director; employees can be designated.

ICAEW notes that its audit qualification is awarded to members who have shown sufficient audit knowledge and supervised experience through examination and work with an authorised training employer. Holding it does not by itself allow anyone to sign. For more on the certificate side, see our page on the ICAEW practising certificate.

Who signs the audit report?

Section 504 defines the senior statutory auditor as the individual the firm identifies for that audit, who must be eligible for appointment as auditor of the company. Regulation 3.16 requires a UK audit report to give the firm’s name as it appears in the register followed by the words “Statutory Auditor”, and, where the law requires it, the name and signature of the responsible individual followed by “Senior Statutory Auditor”. Section 504(3) provides that being named as, or signing as, senior statutory auditor does not create any civil liability that the person would not otherwise have. The wider sequence of the audit is covered in how a statutory audit works.

Are there independence rules on who can be appointed?

Yes. Separately from ethical standards, section 1214 says a person may not act as statutory auditor of a company if they are an officer or employee of it, or a partner or employee of such a person, or if the same applies in relation to an associated undertaking such as a parent or subsidiary. A bookkeeper employed by the company, or a director who happens to be a qualified accountant, cannot be its auditor whatever their qualifications. The ethical side is discussed further in our page on independence in assurance work.

How can a company check that its auditor is registered?

Section 1239 requires regulations for a public register of persons eligible for appointment as statutory auditors. Each entry must include the name and address, the RSB concerned and, for a firm, details of the individuals responsible for audit work on its behalf. The Audit Regulations require firms to tell clients which institute registers them and where to find the entry, and suggest wording that points to www.auditregister.org.uk with the firm’s reference number. A director can therefore check:

  • that the firm name on the engagement letter matches the name on the register exactly;
  • which RSB supervises the firm;
  • that the person who will sign appears as a responsible individual for that firm.

Illustration only. Two chartered accountants run a limited company practice. One holds the audit qualification and is approved as a responsible individual; the other prepares accounts and tax returns and has no audit rights. Ownership is split 50:50, so qualified persons do not hold a majority of the voting rights and the firm fails the control test. Before applying for registration the firm would need a different ownership or voting structure, for example giving the qualified director’s shares a majority of the votes. Even when registered, only the qualified director can sign the audit reports.

What are the common mistakes?

  • Assuming any qualified accountant can sign an audit report. Registration is a firm level status, and only an approved responsible individual can sign.
  • Letting a responsible individual sign for a new firm straight away. ICAEW states that RI status must be applied for again on moving firms.
  • Taking on a principal without the audit qualification and tipping the voting balance below a majority, which breaches the control requirements.
  • Describing a practice as auditors on its letterhead or website when it is not registered. ICAEW warns that an inaccurate firm record may be a misdescription and lead to regulatory action.
  • Forgetting that section 1213 makes it a criminal offence to act while ineligible.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.