Companies Act 2014 section 934C

Sanctions which Supervisory Authority may impose on statutory auditor for relevant contravention

Section 934C sets out the range of sanctions that the Irish Auditing and Accounting Supervisory Authority (IAASA) can impose on a statutory auditor or audit firm that has been found to have committed a relevant contravention.

• IAASA may impose a wide menu of sanctions including cease-and-desist directions, reprimands, declarations that audit or assurance reports are non-compliant, temporary or indefinite bans from audit or sustainability assurance work, and removal from the public register
• Financial penalties of up to €100,000 per individual may be imposed, and for audit firms the cap is €100,000 multiplied by the number of statutory auditors in the firm at the time of the contravention
• Sanctions relating to sustainability reporting assurance — including bans on signing assurance reports — may be imposed for up to three years, whereas sanctions relating to statutory audit work may be imposed for an indefinite period
• IAASA must notify the relevant recognised accountancy body of any sanctions imposed and may direct that body to take the necessary steps to give effect to those sanctions