Prudential Regulation Authority Rulebook

8.1

This Chapter applies in relation to annual reports and accounts with an accounting reference date on or after 1 November 2016.

8.2

Unless otherwise stated, this Chapter applies to an auditor of a firm that:

1. (1) is a UK bank or building society;
2. (2) is not itself the subsidiary of an undertaking that is not an UK undertaking; and
3. (3) meets at least one of the following criteria:
1. (a) it has an individual balance sheet total greater than £50,000,000,000; or
2. (b) it is a member of a group that has a consolidated balance sheet total greater than £50,000,000,000,

as at the last accounting reference date.

8.3

An auditor must provide annually a written report to the PRA in relation to that firm’s audited annual report and accounts.

8.4

The report in 8.3 must:

1. (1) be provided within 120 days of the end of the relevant accounting reference date;
2. (2) provide information about key judgment areas, including:
1. (a) matters of valuation;
2. (b) quality of earnings;
3. (c) key accounting judgments; and
4. (d) the quality of the systems and controls relevant to the preparation of a firm’s annual report and accounts; and
3. (3) be prepared with due skill, care and diligence.

8.5

An auditor must consult with the PRA in advance of preparing the report.

8.6

A firm must cooperate with its auditors in preparing the report.