Homepage

Members Login

Font: A A A

Functions

The Authority’s statutory functions are set out in section 905 of the Companies Act 2014. These are to:

(a) grant recognition to bodies of accountants for the purposes of the 2016 Audits Regulations, Regulation (EU) No 537/2014 and section 1441,

  
(b) attach under section 931  terms and conditions to the recognition of bodies of accountants, including terms and conditions—

  
   (i) requiring changes to, and the approval by the Supervisory Authority of, their regulatory plans, and

  
   (ii) requiring their annual reports to the Supervisory Authority on their regulatory plans to be prepared in the manner and form directed by the Supervisory Authority,

  
(c) require changes to and to approve—

  
   (i) the constitution and bye laws of each prescribed accountancy body, including its investigation and disciplinary procedures and its standards, and

  
   (ii) any amendments to the approved constitution or bye laws of each prescribed accountancy body, including amendments to its investigation and disciplinary procedures and to its standards,

  
(d) conduct under section 933  enquiries into whether a prescribed accountancy body has complied with the investigation and disciplinary procedures approved for that body under paragraph (c) or referred to in subsection (1)(a)(ii) or (iii) or (1)(b) (ii) of that section,

  
(e) impose under section 933  sanctions on prescribed accountancy bodies,

  
(f) undertake under section 934  investigations into possible breaches of the standards of a prescribed accountancy body,

  
(g) supervise how each recognised accountancy body monitors its members and to undertake under section 936  reviews of those members,

  
(h) co-operate with the recognised accountancy bodies and other interested parties in developing standards relating to the independence of auditors and monitor the effectiveness of those standards,

  
(i) monitor the effectiveness of provisions of the 2016 Audits Regulations and Regulation (EU) No 537/2014 relating to the independence of statutory auditors,


(ia) monitor developments in the market for audit services to public-interest entities as required by
Regulation (EU) No 537/2014,

  
(j) supervise the investigation and disciplinary procedures of each prescribed accountancy body, including by requiring access to its records and by requiring explanations about the performance of its regulatory and monitoring duties,

  
(k) co-operate with the prescribed accountancy bodies and other interested parties in developing auditing and accounting standards and practice notes,

  
(l) arrange for the regulation and supervision by recognised accountancy bodies of statutory auditors referred to in Regulation 25(2) of the 2010 Audits Regulations,

  
(m) perform the functions conferred on it by transparency (regulated markets) law (within the meaning of Chapter 4  of Part 23 ) in respect of the matters referred to in Article 24(4)(h) of the Transparency (Regulated Markets) Directive (within the meaning of that Chapter),

  
(ma) adopt auditing standards for the purposes of the 2016 Audits Regulations and Regulation (EU) No 537/2014,


(n) oversee, in accordance with the 2016 Audits Regulations and Regulation (EU) No 537/2014, the performance of (and, where permitted by those Regulations, that Regulation or this Act, perform) the
following functions with respect to statutory auditors:
   (i) the approval and registration of statutory auditors (including the registration of Member State
audit firms);


   (ii) continuing education;


   (iii) quality assurance systems;


   (iv) investigative and administrative disciplinary systems,

  
(o) perform any other duties or discharge any other responsibilities imposed on it by this Act.