Recognized PIE auditor
Yes. Pursuant to section 20ZB of the AFRCO, an overseas auditor must not undertake (i.e. accept an appointment) and carry out any PIE engagement for an overseas entity unless the auditor has been recognized as a PIE auditor of that entity by the AFRC.
Yes. The requirement under section 20ZB of the AFRCO is applicable to any overseas auditor intending to accept an appointment to carry out a PIE engagement.
Validity of the recognition
No. The recognition of Auditor B as a PIE auditor of Entity A takes effect in 20X1 February and expires on 31 December 20X1. Entity A does not have to re-apply for recognition if Auditor B has already been recognized as a PIE auditor for carrying out a PIE engagement for Entity A in 20X1.
If Entity A expects that the very substantial acquisition transaction could not be completed by 31 December 20X1 and/or intends the appointment of Auditor B to continue beyond 31 December 20X1 into Year 20X2, Entity A is required to apply for renewal of the recognition no earlier than 30 September 20X1, and no later than 16 November 20X1.
No. The recognition of an overseas auditor is specific to the overseas entity who makes the application for recognition. Entity Y is required to make its own application for the recognition of Auditor B as its PIE auditor.
The overseas auditor concerned should be a member of / registered with an accountancy body in the home jurisdiction that is a member of the IFAC. The name of that accountancy body should be provided in the application form. The purpose of section 20ZF(2)(b)(i) is to ensure that the overseas auditor concerned is a qualified auditor recognized by the accountancy body in the home jurisdiction to practise audit.
In the event that the overseas auditor is an audit firm / corporation and it is not a member of the accountancy body in the home jurisdiction, the eligibility criterion under section 20ZF(2)(b)(i) would normally be considered as having been fulfilled if a majority of the partners/directors of the audit firm/corporation are members of the accountancy body in the home jurisdiction that is a member of the IFAC.