Companies Act 2014 section 1501

Duty of each recognised accountancy body with regard to sanctions

Section 1501 requires each recognised accountancy body to have arrangements in place that allow it to impose effective, proportionate and dissuasive penalties on statutory auditors and audit firms that fail to carry out statutory audits in accordance with the relevant provisions.

• Each recognised accountancy body must ensure its contractual and other arrangements with members enable it to impose effective, proportionate and dissuasive penalties where statutory audits are not carried out in compliance with the relevant provisions.
• All such contractual and other arrangements must comply with the requirements of procedural fairness.
• The penalty-imposing power extends not only to members but also to non-members over whom the body may perform functions under section 930C.
• The penalties applicable to non-members must be of a like character to those applicable to members, and must apply in the same circumstances of non-compliance.

---