1. For the purposes of this Article:

(a) 'inspections' means quality assurance reviews of statutory auditors, which are led by an inspector and which do not constitute an investigation within the meaning of regulation 3(1)(l) of the Statutory Auditors and Third Country Auditors Regulations 2016;

(b) 'inspector' means an individual who meets the requirements set out in point (a) of the first subparagraph of paragraph 5 of this Article and who is employed or otherwise contracted by a competent authority;

(c) 'expert' means an individual who has specific expertise in financial markets, accounting, auditing or other fields relevant for inspections, including practising statutory auditors.

2. The competent authority shall establish an effective system of audit quality assurance.

They shall carry out quality assurance reviews of individuals and firms that carry out statutory audits of public-interest entities on the basis of an analysis of the risk and: