A. Section 1523 of the Companies Act 2014 states that: ‘Where it considers it reasonably necessary to do so for the purposes of performing a particular function under the relevant provisions, the Supervisory Authority may request information and inspect and make copies of all relevant documents in the possession or control of a recognised accountancy body or a relevant person; for that purpose, it may, by notice in writing served on the recognised accountancy body or relevant person, require the recognised accountancy body or relevant person either (as shall be specified) to—
(a) furnish to it specified documents or information,
or (b) permit it to have access, under specified circumstances, to all relevant documents in the possession or control of the recognised accountancy body or relevant person, within a specified period.’
Regulation (EU) 537/2014 Article 26.7 requires that: ‘At least the following internal quality control policies and procedures of the statutory auditor or the audit firm shall be reviewed:
• compliance by the statutory auditor or the audit firm with applicable auditing and quality control standards, and ethical and independence requirements, including those set out in Chapter IV of Directive 2006/43/EC and Articles 4 and 5 of this Regulation, as well as relevant laws, regulations and administrative provisions of the Member State concerned;
• the quantity and quality of resources used, including compliance with continuing education requirements as set out in Article 13 of Directive 2006/43/EC;
• compliance with the requirements set out in Article 4 of this Regulation on the audit fees charged.
Article 26.7 does not place restrictions on the requirements set out in the Directive, Regulation or applicable auditing, quality control and ethical standards. As such, the quality control procedures set out there and in the auditing and ethical standards extend to all audits, not just PIE audits. In assessing quality control procedures, IAASA includes all policies, procedures, clients and staff in relevant populations for sampling and does not restrict the populations to be only those in connection with PIE audits. This allows for the relevant Recognised Accountancy Body to only inspect non-PIE audits and not to assess internal quality control in respect of non-PIEs which would be a duplication of effort for all parties.