SRA Handbook

Qualifications for making a report

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Version 14 of the Handbook was published on 30/04/2015. For more information, please click 'History' Above

Rule 34: Qualifications for making a report

34.1

A report must be prepared and signed by an accountant

(a)

who is a member of:

(i)

the Institute of Chartered Accountants in England and Wales;

(ii)

the Institute of Chartered Accountants of Scotland;

(iii)

the Association of Chartered Certified Accountants;

(iv)

the Institute of Chartered Accountants in Ireland; or

(v)

the Association of Authorised Public Accountants; and

(b)

who is also:

(i)

an individual who is a registered auditor within the terms of section 1239 of the Companies Act 2006; or

(ii)

an employee of such an individual; or

(iii)

a partner in or employee of a partnership which is a registered auditor within the terms of section 1239 of the Companies Act 2006; or

(iv)

a director or employee of a company which is a registered auditor within the terms of section 1239 of the Companies Act 2006; or

(v)

a member or employee of an LLP which is a registered auditor within the terms of section 1239 of the Companies Act 2006.

34.2

An accountant is not qualified to make a report if:

(a)

at any time between the beginning of the accounting period to which the report relates, and the completion of the report:

(i)

he or she was a partner or employee, or an officer or employee (in the case of a company), or a member or employee (in the case of an LLP) in the firm to which the report relates; or

(ii)

he or she was employed by the same non-solicitor employer as the solicitor or REL for whom the report is being made; or

(iii)

he or she was a partner or employee, or an officer or employee (in the case of a company), or a member or employee (in the case of an LLP) in an accountancy practice which had an ownership interest in, or was part of the group structure of, the licensed body to which the report relates; or

(b)

he or she has been disqualified under rule 34.3 below and notice of disqualification has been given under rule 34.4 (and has not subsequently been withdrawn).

34.3

The SRA may disqualify an accountant from making any accountant's report if:

(a)

the accountant has been found guilty by his or her professional body of professional misconduct or discreditable conduct; or

(b)

the SRA is satisfied that you have not complied with the rules in respect of matters which the accountant has negligently failed to specify in a report.

In coming to a decision, the SRA will take into account any representations made by the accountant or his or her professional body.

34.4

Written notice of disqualification must be left at or sent by recorded delivery to the address of the accountant shown on an accountant's report or in the records of the accountant's professional body. If sent through the post, receipt will be deemed 48 hours (excluding Saturdays, Sundays and Bank Holidays) after posting.

34.5

An accountant's disqualification may be notified to any firm likely to be affected and may be printed in the Society's Gazette or other publication.

Guidance note

(i)

It is not a breach of the rules for you to retain an outside accountant to write up the books of account and to instruct the same accountant to prepare the accountant's report. However, the accountant will have to confirm that these circumstances do not affect his or her independence in preparing the report - see the form of report in Appendix 5.