Companies Act 2014 section 1480

Grounds for mandatory withdrawal in case of statutory audit firm

Section 1480 sets out the grounds on which a recognised accountancy body must withdraw the approval of a statutory audit firm, the procedures it must follow, and the appeal and court suspension mechanisms available to the firm.

• A recognised accountancy body must withdraw an audit firm's approval where the firm's good repute is seriously compromised, or where the firm no longer meets the required conditions for approval.
• Before withdrawing approval, the body must follow fair procedures, serve written notice on the firm, and allow it at least one month to remedy the situation — unless the misconduct is so serious that following the standard notice procedure would not be in the public interest.
• Where internal appeal procedures exist within the accountancy body, the withdrawal decision is suspended until the appeal period expires without an appeal, the appeal confirms the withdrawal, or any appeal lodged is withdrawn.
• An audit firm may apply to the High Court for an order suspending the withdrawal of approval pending determination of an appeal, and the court may attach conditions to any such suspension order.

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