Part 42Statutory Auditors

Chapter 3Auditors General

Supervision of Auditors General

1229Supervision of Auditors General by the Independent Supervisor

1

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

2

The Independent Supervisor must discharge that duty by—

a

entering into supervision arrangements with one or more bodies, and

b

overseeing the effective operation of any supervision arrangements entered into by it.

3

For this purpose “supervision arrangements” are arrangements entered into by the Independent Supervisor with a body, for the purposes of this section, in accordance with which the body does one or more of 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.

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 enters into under this section.

6

Supervision arrangements within subsection (3)(f) may, in particular, provide for the payment by an Auditor General of a fine to any person.

7

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