Companies Act 2014 section 1479

Grounds for mandatory withdrawal of approval in case of statutory auditor

Section 1479 sets out the grounds on which a recognised accountancy body must withdraw the approval of a statutory auditor, and the procedures that must be followed in doing so, including notice requirements, internal appeals, and recourse to the High Court.

• A recognised accountancy body must withdraw a statutory auditor's approval where the auditor's good repute is seriously compromised (including through professional misconduct or lack of professional skill), where the auditor no longer meets the conditions for approval, or where certain registration and regulatory requirements are no longer satisfied
• Before withdrawing approval, the accountancy body must follow fair procedures and serve written notice giving the auditor at least one month to remedy the situation, although this notice procedure may be bypassed where the misconduct is so serious that following it would not be in the public interest
• Where internal appeal procedures exist, the withdrawal of approval may be suspended pending the outcome of the appeal; where no automatic suspension applies, the auditor may apply to the High Court for an order suspending the withdrawal while the appeal is determined
• Once all internal appeals have been exhausted, the auditor may still apply to the High Court to suspend the withdrawal pending a formal court appeal, and the court may attach conditions such as requiring the auditor to work only under supervision of another statutory auditor

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