Companies Act 2014 section 1562

Counterpart authority to be notified of non-compliance with Audit Directive and Regulation (EU) No 537/2014

Section 1562 requires the Supervisory Authority or a recognised accountancy body to notify the relevant authority in another EU Member State when it reasonably believes that audit rules have been breached in that state's territory.

• Where the Supervisory Authority or a recognised accountancy body reasonably believes that activities contrary to the Audit Directive or Regulation (EU) No 537/2014 have occurred in another Member State, it must notify the counterpart authority in that state
• The notification must be made as soon as possible after the opinion is formed
• The notification must include specific details of the matter in question and the grounds for the opinion
• This obligation applies to both ongoing breaches and those that have already taken place