(1) A registered third country auditor [who audits the accounts of a [UK-traded third country company]] must participate in—
(a) arrangements within paragraph 1 of Schedule 12 (arrangements for independent monitoring of audits . . .), and
(b) arrangements within paragraph 2 of that Schedule (arrangements for independent investigation for disciplinary purposes . . .).
(2) A registered third country auditor must—
(a) take such steps as may be reasonably required of it to enable its performance of [audits of accounts of [UK-traded third country companies]] to be monitored by means of inspections carried out under the arrangements mentioned in subsection (1)(a), and
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