Part 42U.K.Statutory Auditors

Modifications etc. (not altering text)

C3Pt. 42: functions transferred in part (6.4.2008 in accordance with art. 1 of the amending S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)

Chapter 3U.K.Auditors General

Supervision of Auditors GeneralU.K.

1229Supervision of Auditors General by the Independent SupervisorU.K.

(1)The Independent Supervisor must supervise the performance by each Auditor General of his functions as a statutory auditor.

[F1(2)The Independent Supervisor must discharge that duty by—

(a)establishing supervision arrangements itself, or

(b)entering into supervision arrangements with one or more [F2recognised supervisory bodies].

(2A)If the Independent Supervisor enters into supervision arrangements with one or more bodies, it must oversee the effective operation of those supervision arrangements.]

(3)For this purpose “supervision arrangements” are arrangements [F3established by the Independent Supervisor or] entered into by the Independent Supervisor with a body, for the purposes of this section, in accordance with which [F4the Independent Supervisor or] the body does F5. . . the following—

(a)determines standards relating to professional integrity and independence which must be applied by an Auditor General in statutory audit work;

(b)determines technical standards which must be applied by an Auditor General in statutory audit work and the manner in which those standards are to be applied in practice;

(c)monitors the performance of statutory audits carried out by an Auditor General;

(d)investigates any matter arising from the performance by an Auditor General of a statutory audit;

(e)holds disciplinary hearings in respect of an Auditor General which appear to be desirable following the conclusion of such investigations;

(f)decides whether (and, if so, what) disciplinary action should be taken against an Auditor General to whom such a hearing related.

[F6(3A)The requirements of [F7paragraphs 9 to 10C and 12 to 16] of Schedule 10 (requirements for recognition of a supervisory body) apply in relation to supervision arrangements as they apply in relation to the rules, practices and arrangements of supervisory bodies.]

(4)The Independent Supervisor may enter into supervision arrangements with a body despite any relationship that may exist between the Independent Supervisor and that body.

(5)The Independent Supervisor must notify each Auditor General in writing of any supervision arrangements that it [F8establishes or] enters into under this section.

[F9(5A)The Independent Supervisor must, at least once in every calendar year, deliver to the Secretary of State a summary of the results of any inspections conducted for the purposes of subsection (3)(c).]

(6)Supervision arrangements within subsection (3)(f) may, in particular, provide for the payment by an Auditor General of a fine to any person[F10or, in the case of the Auditor General for Wales, for payment by the Wales Audit Office of such a fine].

(7)Any fine received by the Independent Supervisor under supervision arrangements is to be paid into the Consolidated Fund.

Textual Amendments