The AOA’s function is set out in The Auditors Oversight Law (2020 Revision) (the "AOL").
Our primary mandate is to regulate and supervise auditors who audit the financial statements of market traded, designated or Authority specified companies from or within the Cayman Islands (referred to as “recognized auditors” under the AOL).
The register of recognized auditors can be found here: [register]
“Market traded company” is a defined term under the AOL and essentially is an entity some or all of whose securities are traded on a regulated market.
"Designated company” is a defined term under the AOL and essentially is an entity which is specified in the Regulations to the AOL.
“Authority specified company’ is a defined term under the Law and essentially is an entity which is specified by the Authority in a notice issued under section 17A of the AOL.
“Regulated market” is defined as the Cayman Islands Stock Exchange, a market regulated by a member state of the European Union (there are approximately 30 such markets) specified by the AOA by notice in the Cayman Islands Gazette or any other market specified by the AOA by notice in the Gazette.
For a list of regulated markets see here: [regulated markets]
The AOA has the power to exempt entities from the definition of “market traded company” and, hence, remove the audits and auditors of their financial statements from its regulation.
For a list of exempted entities see here: [exempted entities]
An auditor is only qualified for appointment as auditor of a market traded or designated company if he is also a recognized auditor. A person shall not, unless he is a recognized auditor, describe himself as engaged in the audit of market traded or designated companies or hold himself out to be so qualified.
Auditors of the financial statements of Authority specified companies may apply to the AOA to be entered on the register of recognized auditors (and submit to the AOA’s oversight in respect of such audits) but are not required to do so.
Other jurisdictions may have different laws and regulations relating to which audits and auditors are in-scope of their system of auditor oversight. The AOA anticipates that it will be requested by independent audit regulators in other jurisdictions to carry out oversight activities on behalf of those other regulators to the extent they relate to auditors based in or operating from the Cayman Islands. In many instances, it will beneficial to those auditors to submit to the AOA’s jurisdiction when the AOA has decided that it is appropriate, and that it has the power, to assist the other regulators even though the audits or auditors would not fall within the AOA’s primary mandate.
For more information see here: [International Cooperation]
Auditors Oversight Act (2020 Revision)