Simplification Of The Requirements When An Auditor Leaves Office

The Companies Act 2006 imposes obligations both on an outgoing auditor and on the company it is ceasing to audit, to ensure that information about the auditor's departure (and the reasons for it) is given to the company's shareholders and to the appropriate authorities.  These provisions came into force in April 2008, and it soon emerged that there was unnecessary bureaucracy and duplication in the notification requirements. 

In November 2009, the Government consulted on changes.  It has taken a while, but simplified requirements will apply where an auditor leaves office in relation to a financial year beginning on or after 1 October 2015.  The changes will be particularly useful in the context of company acquisitions.