Companies Act 2014 section 934

Investigation of possible breaches of standards of prescribed accountancy bodies

Section 934 sets out the powers of the Supervisory Authority (IAASA) to investigate possible breaches of professional standards by members of prescribed accountancy bodies and by statutory auditors, including the procedures for compelling cooperation, imposing sanctions, recovering costs, and allowing appeals.

• The Supervisory Authority may investigate possible breaches of standards by accountancy body members or statutory auditors, either following a complaint or on its own initiative, provided it considers it appropriate or in the public interest
• During an investigation, the Authority can require relevant persons to produce documents, attend before it, provide reasonable assistance, and give evidence under oath — and if they refuse, the Authority can refer their non-compliance to the court for enforcement
• Where a breach is found, the Authority may impose sanctions (including monetary penalties) in line with the accountancy body's own constitution and bye-laws for its members, or relevant statutory sanctions for statutory auditors, having regard to the circumstances set out in section 934D
• Investigation costs are borne by the prescribed accountancy body (for its members) or by the statutory auditor concerned, with a right to appeal decisions on both sanctions and costs to the court within three months of notification