Companies Act 2014 section 935

Supplemental provisions in relation to section 934 (including as concerns its relationship to provisions of 2010 Audits Regulations)

Section 935 clarifies the scope of the Supervisory Authority's power to investigate breaches of standards by statutory auditors and audit firms, and sets out the actions and sanctions available to it following such investigations.

• The Supervisory Authority can investigate even where a recognised accountancy body has already considered the matter and decided not to act, has not considered the matter at all, or has found insufficient evidence to proceed.
• Where the Authority finds a breach of standards, it may be required or empowered to withdraw the person's or firm's approval as a statutory auditor or audit firm, depending on the nature of the breach and which regulatory provisions apply.
• The Authority may also impose other sanctions in addition to withdrawing approval (where withdrawal is mandatory) or instead of withdrawing approval (where withdrawal is discretionary).
• The term "member" is extended beyond formal members of recognised accountancy bodies to include any individual or firm over whom such a body may exercise powers under Part 27 or Part 28 of the Act.