1229Supervision of Auditors General by the Independent SupervisorU.K.
This section has no associated Explanatory Notes
(1)The Independent Supervisor must supervise the performance by each Auditor General of his functions as a statutory auditor.
[(2)The Independent Supervisor must discharge that duty by—
(a)establishing supervision arrangements itself, or
(b)entering into supervision arrangements with one or more [recognised supervisory bodies].
(2A)If the Independent Supervisor enters into supervision arrangements with one or more bodies, it must oversee the effective operation of those supervision arrangements.]
(3)For this purpose “supervision arrangements” are arrangements [established by the Independent Supervisor or] entered into by the Independent Supervisor with a body, for the purposes of this section, in accordance with which [the Independent Supervisor or] the body does . . . the following—
(a)determines standards relating to professional integrity and independence which must be applied by an Auditor General in statutory audit work;
(b)determines technical standards which must be applied by an Auditor General in statutory audit work and the manner in which those standards are to be applied in practice;
(c)monitors the performance of statutory audits carried out by an Auditor General;
(d)investigates any matter arising from the performance by an Auditor General of a statutory audit;
(e)holds disciplinary hearings in respect of an Auditor General which appear to be desirable following the conclusion of such investigations;
(f)decides whether (and, if so, what) disciplinary action should be taken against an Auditor General to whom such a hearing related.
[(3A)The requirements of [paragraphs 9 to 10C and 12 to 16] of Schedule 10 (requirements for recognition of a supervisory body) apply in relation to supervision arrangements as they apply in relation to the rules, practices and arrangements of supervisory bodies.]
(4)The Independent Supervisor may enter into supervision arrangements with a body despite any relationship that may exist between the Independent Supervisor and that body.
(5)The Independent Supervisor must notify each Auditor General in writing of any supervision arrangements that it [establishes or] enters into under this section.
[(5A)The Independent Supervisor must, at least once in every calendar year, deliver to the Secretary of State a summary of the results of any inspections conducted for the purposes of subsection (3)(c).]
(6)Supervision arrangements within subsection (3)(f) may, in particular, provide for the payment by an Auditor General of a fine to any person[or, in the case of the Auditor General for Wales, for payment by the Wales Audit Office of such a fine].
(7)Any fine received by the Independent Supervisor under supervision arrangements is to be paid into the Consolidated Fund.