Auditors Audit Quality Review Auditor Regulatory Sanctions Procedure

Auditor Regulatory Sanctions Procedure

Following inspection by the Audit Quality Review team, the FRC may independent determine sanctions against Audit Firms where they have failed to comply with the rules relevant to local audit. The procedure and guidance for deciding such sanctions is set out below.

A different procedure, the Auditor Regulatory Sanctions Procedure (PDF) applies in respect of failures to comply with the rules relevant to statutory audit and third country audit functions.Sanctions determined by the Financial Reporting Council's Enforcement Committee are detailed here.

There are similar arrangements under the Crown Dependencies’ Recognised Auditor Regulatory Sanctions Procedure January 2021 where the Audit Quality Review team has inspected a Recognised Auditor registered in one of the Crown Dependencies of Guernsey, the Isle of Man and Jersey. Guidance on the application of the Procedure is available here: Recognised Auditor Regulatory Sanctions Guidance (PDF)

Previous versions of these procedures