Auditors need to meet certain requirements under Isle of Man company law in order to be eligible for appointment as an auditor of a company incorporated in the Isle of Man. These requirements generally fall into two categories and the Isle of Man Financial Services Authority (‘the Authority’) has a specific role in relation to each:

Categories To audit  Requirements  The Authority's role 
General Auditor Requirements Any Isle of Man-incorporated company Basic qualification requirements under sections 14-14H of the Companies Act 1982 regarding membership of a “recognised accountancy body”. In very limited circumstances, to determine applications under section 14E of the Companies Act 1982 where the basic qualification requirements are not met.
Recognised Auditor Requirements Any Isle of Man-incorporated company that is admitted to trade on a European Union “regulated market” Enhanced qualification requirements, registration, monitoring and oversight under the Recognised Auditor regime. To determine applications for registration and maintain the register of Recognised Auditors.

The relationship between the two categories is illustrated in the following flow chart: