(1) A recognised accountancy body may, on application made to it by an individual or a firm, approve, under this Part, the applicant as a statutory auditor or audit firm.

(2) A recognised accountancy body may, on foot of an application under subsection (1), grant approval under this Part only to -

(a) individuals, or

(b) firms,

who are of good repute.

(3) A recognised accountancy body may, on application made to it by a third-country auditor and in accordance with Chapter 20, approve, under this Part, the applicant as a statutory auditor.

(4) Subsection (5) applies in the case of an application under subsection (1) -

(a) by a firm that is a Member State audit firm in the circumstances where it is not seeking registration in accordance with section 1465, or

(b) by a Member State auditor.