Statutory audits shall be carried out only by statutory auditors or audit firms approved by the Member State requiring the statutory audit. Each Member State shall designate the competent authority responsible for approving statutory auditors and audit firms. Without prejudice to Article 11, competent authorities may approve as statutory auditors only natural persons who satisfy at least the conditions laid down in Articles 4 and 6 to 10.

Competent authorities may approve audit firms only where: (a) the natural persons who carry out statutory audits on behalf of the firm satisfy the conditions in Article 4, Article 6(1), Article 7(1), Article 8(1) and (2), Article 9, Article 10(1) (first subparagraph), Article 11 and Article 12 and are approved as statutory auditors in the Member State concerned; (b) a majority of the voting rights is held by audit firms approved in any Member State or by natural persons meeting those conditions (Member States may require such persons to be approved in another Member State and may lay down specific rules for cooperatives, savings banks and similar entities); (c) a majority—up to a maximum of 75%—of the administrative or management body are approved audit firms or natural persons meeting those conditions (Member States may require approval in another Member State; where such a body has no more than two members, one must satisfy these conditions); and (d) the firm satisfies the condition imposed by Article 4. Member States may set additional conditions only in relation to point (c), which shall be proportionate and no more than strictly necessary.