Companies Act 2014 section 1499

System of investigation and penalties

Section 1499 requires each recognised accountancy body to establish effective systems for investigating and penalising inadequate statutory audits, while limiting their power to penalise auditors of public-interest entities.

• Each recognised accountancy body must put in place effective systems to detect, correct, and prevent the inadequate execution of statutory audits.
• These systems apply only to auditors and audit firms over whom the body may perform functions under section 930C.
• A recognised accountancy body cannot impose penalties on a statutory auditor or audit firm of a public-interest entity for a relevant contravention relating to that entity.
• The restriction on penalising auditors of public-interest entities applies whether the contravention relates wholly or partly to that entity.