C5C1C2C3C4Part 42Statutory Auditors
Pt. 42 modified (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 43
Pt. 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S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)
Pt. 42 applied (with modifications) (15.8.2008) by The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 (S.I. 2008/1950), reg. 6(5)
Pt. 42: functions transferred in part (2.7.2012) by The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 (S.I. 2012/1741), arts. 1(2), 7, 8, 9 (with art. 16)
Chapter 3Auditors General
Enforcement
1234Suspension notices
1
The Independent Supervisor may issue—
a
a notice (a “suspension notice”) suspending an Auditor General's eligibility for appointment as a statutory auditor in relation to all persons, or any specified person or persons, indefinitely or until a date specified in the notice;
b
a notice amending or revoking a suspension notice previously issued to an Auditor General.
2
In determining whether it is appropriate to issue a notice under subsection (1), the Independent Supervisor must have regard to—
a
the Auditor General's performance of the obligations imposed on him by or by virtue of this Part, and
b
the Auditor General's performance of his functions as a statutory auditor.
3
A notice under subsection (1) must—
a
be in writing, and
b
state the date on which it takes effect (which must be after the period of three months beginning with the date on which it is issued).
4
Before issuing a notice under subsection (1), the Independent Supervisor must—
a
give written notice of its intention to do so to the Auditor General, and
b
publish the notice mentioned in paragraph (a) in such manner as it thinks appropriate for bringing it to the attention of any other persons who are likely to be affected.
5
A notice under subsection (4) must—
a
state the reasons for which the Independent Supervisor proposes to act, and
b
give particulars of the rights conferred by subsection (6).
6
A person within subsection (7) may, within the period of three months beginning with the date of service or publication of the notice under subsection (4) or such longer period as the Independent Supervisor may allow, make written representations to the Independent Supervisor and, if desired, oral representations to a person appointed for that purpose by the Independent Supervisor.
7
The persons within this subsection are—
a
the Auditor General, and
b
any other person who appears to the Independent Supervisor to be affected.
8
The Independent Supervisor must have regard to any representations made in accordance with subsection (6) in determining—
a
whether to issue a notice under subsection (1), and
b
the terms of any such notice.
9
If in any case the Independent Supervisor considers it appropriate to do so in the public interest it may issue a notice under subsection (1), without regard to the restriction in subsection (3)(b), even if—
a
no notice has been given or published under subsection (4), or
b
the period of time for making representations in pursuance of such a notice has not expired.
10
On issuing a notice under subsection (1), the Independent Supervisor must—
a
give a copy of the notice to the Auditor General, and
b
publish the notice in such manner as it thinks appropriate for bringing it to the attention of persons likely to be affected.
11
In this section “specified” means specified in, or of a description specified in, the suspension notice in question.
1235Effect of suspension notices
1
An Auditor General must not act as a statutory auditor at any time when a suspension notice issued to him in respect of the audited person has effect.
2
If at any time during an Auditor General's term of office as a statutory auditor a suspension notice issued to him in respect of the audited person takes effect, he must immediately—
a
resign his office (with immediate effect), and
b
give notice in writing to the audited person that he has resigned by reason of his becoming ineligible for appointment.
3
A suspension notice does not make an Auditor General ineligible for appointment as a statutory auditor for the purposes of section 1213 (effect of ineligibility: criminal offences).
1236Compliance orders
1
If at any time it appears to the Independent Supervisor that an Auditor General has failed to comply with an obligation imposed on him by or by virtue of this Part, the Independent Supervisor may make an application to the court under this section.
2
If on an application under this section the court decides that the Auditor General has failed to comply with the obligation in question, it may order the Auditor General to take such steps as the court directs for securing that the obligation is complied with.
3
In this section “the court” means the High Court or, in Scotland, the Court of Session.
Pt. 42 applied (with modifications) (4.4.2014 for specified purposes, 16.12.2014 in so far as not already in force) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 5 paras. 1-27 (with Sch. 13 para. 11); S.I. 2014/900, art. 2(j); S.I. 2014/3319, art. 2(e) (as amended: (31.12.2020) by S.I. 2019/177, regs. 2, 57; 2020 c. 1, Sch. 5 para. 1(1) and S.I. 2019/504, regs. 1(2), 3-6; 2020 c. 1, Sch. 5 para. 1(1); and (1.7.2022) by 2022 c. 31, s. 186(6), Sch. 4 para. 216, Sch. 7 para. 28; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30))