18 tal-2009 - Accountancy Profession Regulations, 2009(English Version only)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 18,366, 16 ta’ Jannar, 2009

Taqsima B

L.N. 18 of 2009

ACCOUNTANCY PROFESSION ACT

(CAP. 281)

Accountancy Profession Regulations, 2009

BY virtue of the powers given by article 8 of the Accountancy

Profession Act, the Minister of Finance, Economy and Investment

on the recommendation of the Accountancy Board, has made the

following regulations:-

(1) The title of these regulations is the Accountancy

Profession Regulations, 2009.

(2) These regulations shall be deemed to have come

into force on 1 October, 2008.

(Regulation 11)

Rules of Procedure

1. The title of these rules is the Accountancy Profession

Rules of Procedure.

2. In these rules -

“the Act” means the Accountancy Profession Act;

“the Board” means the Accountancy Board established

by the Act;

“the Chairman” means the Chairman of the Accountancy

Board and includes, in the case of absence of the Chairman

from a meeting of the Board, the member acting as chairman

for that meeting;

“charge” means a charge specified in a notice of inquiry;

“notice of inquiry” has the meaning assigned to it in rule

5(1);

“practising certificate holder” means a holder of a

practising certificate issued in terms of article 4 of the Act, and

references to practising certificate holder, in relation to any

complaint or information or to any proceedings, are references

to the practising certificate holder against whom a complaint or

information is sent to the Board;

“Secretary” means the Secretary of the Accountancy

Board appointed in accordance with the provisions of article

6(5) of the Act;

“warrant holder” has the same meaning as is assigned to it

in the Accountancy Profession Regulations, and references to

the warrant holder, in relation to any complaint or information

or to any proceedings, are references to the warrant holder

against whom a complaint or information is sent to the Board.

3. A warrant or practising certificate may only be suspended

or revoked in terms of article 15(1)(a) or (2)(d) or (2)(e) of the Act

in consequence of an inquiry held in accordance with the provisions

of these rules, into the charge or charges formulated in a notice of

inquiry served in accordance with the provisions of these rules on

the person against whom the charge or charges is or are made.

4. (1) Where

(a) a complaint in writing on the conduct of a warrant

holder or a practising certificate holder has been sent to the

Board by the Minister or by any member of the Board or by

any body or person, or information in writing as to the conduct

of a warrant holder or a practising certificate holder has been

sent to the Board by a person acting in a public capacity, or

(b) a complaint in writing that a warrant holder or

practising certificate holder is unfit to continue to practice his

profession on grounds of mental or physical infirmity is sent

to the Board by the Minister or by any member of the Board

or by any body or person, or information in writing as to the

unfitness of a warrant holder or practising certificate holder to

continue to practice his profession on the grounds aforesaid is

sent to the Board by a person acting in a public capacity,

the Secretary shall submit the complaint or information to the

Chairman.

(2) In so far as a complaint relates to conduct or unfitness

on grounds of infirmity it shall not proceed further unless and until

it has been confirmed by means of a declaration on oath; and every

such declaration –

(a) shall state the address and description of the

declarant; and

(b) if any fact declared is not within the personal

knowledge of the declarant, shall state the source of the

declarant’s information and the grounds for his belief in the

truth of the fact.

(3) Subject to the provisions of sub-rule (2), the

Chairman shall direct the Secretary to notify the warrant holder

or practising certificate holder of the receipt of the complaint or

information stating the substance thereof and sending to the warrant

holder or a practising certificate holder a copy of any declaration on

oath furnished under sub-rule (2), and to invite the warrant holder or

practising certificate holder to submit to the Board, within such date

as the Chairman shall determine, any explanation which the warrant

holder or practising certificate holder may have to offer; and every

such explanation must be in writing and must reach the Secretary

within the time fixed by the Chairman

Provided that in so far as a complaint or information

relates to conduct, if it does not appear to the Chairman that a

question arises whether the said conduct constitutes any of the acts or

omissions referred to in article 15(1)(a) of the Act, he shall direct the

Secretary to refer such complaint or information to the Board either

to decide that the complaint or information need not proceed further

or to direct the Secretary to notify the warrant holder or practising

certificate holder in accordance with the provisions of this sub-rule.

(4) Subject to the foregoing provisions of this rule, the

Chairman shall direct the Secretary to refer for enquiry a complaint

or information to the Board together with any explanation then

furnished by the warrant holder or practising certificate holder and

any declarations on oath furnished under sub-rule (2).

(5) In this rule, the expression “person acting in a public

capacity” means an officer of a Government Department or public

authority acting as such, or any person holding judicial office or any

officer attached to a court.

5. (1) As soon as may be after a complaint or information

has been referred to the Board under the foregoing provisions and

unless the Board is fully satisfied with the written explanation of the

warrant holder or practising certificate holder, the Secretary shall

serve on the warrant holder or practising certificate holder notice (in

these rules referred to as “a notice of inquiry”) which shall

(a) specify, in the form of a charge or charges, the

matters into which the inquiry is to be held, and

(b) state the day, time and place at which the inquiry is

to be held; and

(c) state the names of the individuals nominated by

the Board to perform duties as members of the disciplinary

committee in respect of the particular charge or charges,

including the individual nominated by the Board as

Chairman.

(2) The inquiry shall not be fixed for any date earlier

than eight days after the date of service of the notice of inquiry on

the warrant holder or practising certificate holder.

(3) The Secretary shall cause such service to be effected

either personally on the warrant holder or the practising certificate

holder, or by the delivery of such notice at his place of residence

in the case of an individual, and in the case of a firm registered in

terms of article 10 of the Act, at the address from which it conducts

its activities according to the records of the Board.

(4) A notice of inquiry shall be in the form set out in

Form A contained in the Appendix to these rules, with such variations

as circumstances may require.

(5) There shall be sent with any notice of inquiry a copy

of these rules.

(6) A copy of the notice of inquiry shall be served on

the complainant or the informer.

6. The Chairman shall appoint the day and time for the

holding of an inquiry.

7. (1) Where before the hearing of an inquiry it appears to

the Chairman, or at any stage of the hearing it appears to the Board,

that a notice of inquiry is defective, the Chairman or the Board,

as the case may be, shall give directions for the amendment of the

notice as may be necessary unless, having regard to the merits of the

case, the required amendments cannot be made without injustice.

(2) Where in the opinion of the Chairman or of the

Board it is expedient, in consequence of the exercise by him or it

of the powers conferred by sub-rule (1), that the inquiry should be

postponed or adjourned, the Chairman or the Board, as the case may

be, shall give such directions in that behalf as appear necessary.

8. Proceedings before the disciplinary committee shall be

held in public; the disciplinary committee may, however, when it

considers it necessary or expedient, order that the proceedings be

held in private.

9. (1) Any member of the disciplinary committee and the

Secretary shall abstain from taking part in any inquiry or may be

challenged in any of the circumstances in which a judge would

abstain or may be challenged in accordance with the provisions of

section 734 of the Code of Organization and Civil Procedure.

(2) Any such challenge shall be made before the reading

out by the Secretary of the charge or charges to the warrant holder or

practising certificate holder, unless the cause of the challenge arose

or came to the knowledge of the party later.

(3) The disciplinary committee shall decide the

objection previously to the reading of the said charge or charges, or

later in appropriate cases, and its decision shall be final.

10. (1) Any party to the proceedings before the disciplinary

committee may be assisted by an advocate or legal procurator. The

warrant holder or practising certificate holder may also be assisted

by another warrant holder or practising certificate holder.

(2) The Chairman of the disciplinary committee

shall bring the provisions of these rules to the notice of any party

to the proceedings appearing before the Board without any such

assistance.

11. The proceedings on the inquiry shall commence with the

reading out by the Secretary of the charge or charges. Thereupon

the Chairman of the disciplinary committee shall put to the warrant

holder or practising certificate holder the question whether he admits

or refutes the charge or charges.

12. (1) If the warrant holder or practising certificate holder

admits the charge or charges the disciplinary committee may, in its

discretion, dispense with the production of witnesses and proceed to

give its decision on that day or on any other day appointed for the

purpose.

(2) If the warrant holder or practising certificate holder

refutes the charge or charges the disciplinary committee shall

proceed with the inquiry.

(3) If the warrant holder or practising certificate holder

fails to attend without just cause and the disciplinary committee is

satisfied that a notice of inquiry was served as required by these

rules, the disciplinary committee may, if it thinks fit, proceed with

the inquiry even in his absence

Provided that if the warrant holder or practising

certificate holder is unable to attend for a just cause, he may, if he

so prefers, request that the inquiry be proceeded with and appoint

one of the persons mentioned in rule 10(1) to represent him in the

proceedings.

(1) In these regulations unless the context otherwise

requires

“the Act” means the Accountancy Profession Act;

“affiliate” means any undertaking, regardless of its legal

form, which is connected to a firm by means of common

ownership, control or management;

“competent authorities of other Member States” means

the authorities or bodies designated by the law of the other

Member States responsible for approval, registration, quality

assurance, inspection or oversight of statutory auditors in terms

of the Directive;

“the Directive” means Directive 2006/43/EC of the

European Parliament and of the Council of 17 May 2006;

“group auditor” means the auditor carrying out the audit

of consolidated accounts;

“statutory auditor” means an individual who is approved

by the Board in terms of the Act and these regulations to carry

out a statutory audit;

“warrant holder” means a person who has been issued

with a warrant to practice the profession of accountant or is a

firm registered under article 10 of the Act.

(2) Unless the context otherwise requires, terms used in

these regulations and not defined shall have the meaning assigned to

them in the Act.

(1) No person other than a warrant holder may perform

the work or render the services listed in subregulation (2).

(2) The services indicated in subregulation (1) are

(a) the issuing of reports on prospective financial

information prepared for the promotion of investment in an

entity or for the raising of finance;

(b) the issuing of independent reports on share valuations

or valuations of businesses;

(c) acting as reporting accountants in prospectuses,

offering memoranda and other similar documents intended for

public subscription;

(d) the issuing of reports, including compilation or

review of reports, with respect to interim or annual financial

statements of any entity but excluding any reports on financial

statements prepared for internal purposes; and

(e) any other service which may be prescribed by the

Minister or by any other law.

(3) Any person who acts in contravention of the

provisions of this regulation shall be guilty of an offence and shall on

conviction be liable to a fine (multa) of not more than six thousand

euro (6,000.00).

(1) An audit may only be carried out by a person holding

a practising certificate in the field of auditing issued in terms of

article 4 of the Act, to a person who

(a) holds a warrant issued in terms of Article 4(1) of the

Act and satisfies the Board that

(i) he has adequate qualifications in auditing at an

advanced level;

(ii) satisfies the conditions referred to in subarticle

2(d) of article 3 of the Act; and

(iii) has gained the equivalent of three years full

time practical training in inter alia auditing of financial

statements, at least two-thirds of which shall be with an

auditor approved in any Member State

Provided that at least eighteen months of this

practical training were gained after obtaining the degree

or academic qualification relating to the accountancy

profession prescribed in article 3(2)(c) of the Act; or

(b) he satisfies the conditions laid down by article 4(3)

or 4(6) of the Act.

(2) The person providing the practical training in

accordance with the provisions of this regulation shall provide the

Board with a written declaration that inter alia it has the ability to

provide adequate practical training in accordance with the provisions

of the Act and the regulations and directives issued under it, on

such form prescribed by the Board for that purpose and any person

making a false declaration shall be subject to a fine not to exceed

six thousand euro (6,000.00) and in the case of warrant holders

or practising certificate holders may result in the institution of

disciplinary proceedings.

(3) An authorisation to act as auditor issued prior to the

25th July, 1978, under the provisions of article 141 of the Commercial

Partnerships Ordinance as in force at the time of the issue of the

authorization, in favour of a person who was then a member of a

body of accountants recognized for the purposes of that article, or

the holding of a warrant to act as auditor issued under the provisions

of article 4(1) of the Act, prior to the date of entry into force of The

Accountancy Profession Regulations, 1987 (“1987 Regulations”)

or practising certificates issued in terms of the 1987 Regulations,

shall for all purposes have the same effect of a practising certificate

issued under this regulation and be deemed to have been so issued.

(4) The holder of a practising certificate issued under

this regulation may bring this fact to the notice of the public, so

however that holders of the warrant of certified public accountant

and auditor immediately before the date with effect from which

such person shall be deemed to have been issued with a practising

certificate under the immediately preceding subregulation, shall

cease to use the designation “certified public accountant and auditor”

and the corresponding abbreviation “CPAA”.

(5) A firm registered under article 10 of the Act shall be

entitled to apply for a practising certificate to act as auditor

Provided that the provisions of subregulation (3) shall

apply mutatis mutandis in respect of firms registered under article

10 of the Act prior to the date of entry into force of the 1987

Regulations.

(6) The individuals who carry out a statutory audit

on behalf of an audit firm must be principals holding a practising

certificate in the field of auditing.

(7) Agreements or other arrangements purporting to

exempt persons required to hold a practising certificate issued under

this regulation from any liability, responsibility or duty relative to the

statutory audit, or to relieve him therefrom, or, except under a policy

of insurance made out under article 11 of the Act, to indemnify him

against any such liability or responsibility, shall be null and void.

(8) The partners or shareholders of an audit firm as well

as the members of the administrative and management bodies of

such a firm, or of an affiliate shall not intervene in the execution

of an audit in any way which jeopardises the independence and

objectivity of the principals carrying out the audit on behalf of the

firm.

(1) Every person who, and every firm under article 10 of

the Act which, is required to be covered by an indemnity insurance

policy in terms of article 11 of the Act shall be adequately covered,

throughout the currency of the insurance policy to the extent

reasonably necessary according to the particular circumstances of

such person or firm and in particular by reference to the size and

type of practice and clients

Provided that with effect from 1 January 2010, if the

aggregate limit of liability in an indemnity insurance policy is less

than the lower of the limits as calculated in paragraphs (a) and (b)

below, then the cover shall be deemed inadequate

(a) (i) in the case of a sole practitioner, one hundred

thousand euro (100,000.00) (inclusive of costs to defend the

claim but exclusive of the amount that may be deducted by the

insurance company on each and every claim under the terms

of the policy); and

(ii) in the case of a firm, the said amount shall be

the equivalent of one hundred thousand euro (100,000.00)

(inclusive of costs to defend the claim but exclusive of the

amount that may be deducted by the insurance company on

each and every claim under the terms of the policy) multiplied

by the number of principals in the said firm;

Provided that in the case of a firm structured in a manner

such that the liability of its owners is directly or indirectly

limited, then the appropriate limit of liability for the purposes

of this paragraph (a) shall be five hundred thousand euro

(500,000.00) multiplied by the number of principals in the said

firm; and

(b) the amount arrived at by multiplying the total annual

fees charged by the insured in the course of his or its practice,

by three;

Provided that in the case of a firm structured in a manner

such that the liability of its owners is directly or indirectly

limited, then the appropriate limit of liability for the purposes

of this paragraph (b) shall be the total annual fees charged by

the insured in the course of his practice multiplied by five.

(2) For the period commencing on the date of coming

into force of these regulations and ending on 31 December 2009,

every person who, and every firm under article 10 of the Act which,

is required to be covered by an indemnity insurance policy in terms

of article 11 of the Act shall be adequately covered throughout the

currency of the insurance policy for a minimum amount of fifty-eight

thousand and two hundred and thirty four euro (€58,234) (inclusive

of costs to defend the claim) in respect of each sole practitioner and

fifty-eight thousand and two hundred and thirty four euro (€58,234)

(inclusive of costs to defend the claim) in respect of each principal

in a firm

Provided that in the case of a firm structured in a manner

such that the liability of its owners is directly or indirectly limited,

then the aggregate limit of liability in an indemnity insurance policy

shall not be less than the lower of

(a) the amount arrived at by multiplying the number

of principals in the firm by five hundred thousand euro

(500,000.00); and

(b) the amount arrived at by multiplying the total annual

fees charged by the firm in the course of its practice by five.

(3) In the event of reasonable doubt as to whether a

person or firm is adequately covered by an indemnity insurance

policy, the matter shall be conclusively determined by the committee

appointed by the Board for the operation of a system of quality

assurance in terms of Article 7(2) of the Act.

(1) The register of warrant holders and practising

certificate holders to be kept by the Board in terms of Article 7(4) of

the Act shall include for each warrant holder or practising certificate

holder, including a third-country auditor registered in terms of article

7(6) of the Act

(a) the name, address and registration number;

(b) a clear indication as to whether the warrant holder

has been issued with a practising certificate to carry out audits

together with the date of issue of such practising certificate;

(c) if applicable, the name, address, website address and

registration number of the audit firm by which the statutory

auditor is employed or with whom he is associated as a partner

or otherwise; and

(d) all other registrations as statutory auditor with the

competent authorities of another Member State and as auditor

with a third country, including the name of the registration

authority, and if applicable, the registration number.

(2) The register of registered firms to be kept by the

Board in terms of article 7(4) of the Act shall include for each

registered firm, including a third-country audit-entity

(a) the name, address and registration number;

(b) the legal form;

(c) contact information, the primary contact person and

where applicable the website address;

(d) address of each office in the Member State;

(e) name and registration number of all statutory

auditors employed by or associated as partner or otherwise

with the audit firm and indicating in each case whether the

statutory auditor is authorised to sign audit reports on behalf

of the firm;

(f) names and business addresses of all owners and

shareholders;

(g) names and business addresses of all members of the

administrative or management body;

(h) if applicable, the membership of a network and a list

of the names and addresses of member firms and affiliates or

an indication of the place where such information is publicly

available; and

(i) all other registrations as audit firm with the competent

authorities of another Member State as an audit entity with

third countries including the name of the registration authority,

and if applicable, the registration number.

(3) The Board shall assign for each registered auditor,

third-country auditor and third-country audit entity a unique

registration number.

(4) The register referred to in this regulation shall

indicate clearly the contact details of the Board and such other

information as may be reasonably necessary to indicate that the Board

is the ultimate competent authority with ultimate responsibilities for

public oversight, the approval of warrants and practising certificates,

the operation of the quality assurance process and for investigation

and disciplinary measures.

(1) The course of theoretical instruction referred to

in article 3(2)(c) of the Act shall cover the following subjects in

particular

(a) general accounting theory and principles;

(b) legal requirements and standards relating to the

preparation of annual and consolidated accounts;

(c) international accounting standards;

(d) financial analysis;

(e) cost and management accounting;

(f) risk management and internal control;

(g) tax law;

(h) auditing and professional skills;

(i) legal requirements and professional standards

relating to accountants, auditors and the statutory audit;

(j) international auditing standards;

(k) professional ethics and independence.

(2) Such course shall also cover at least the following

subjects insofar as they are relevant to auditing and accounting

(a) company law and corporate governance;

(b) the law of insolvency and similar procedures;

(c) tax law;

(d) civil and commercial law;

(e) social security law and employment law;

(f) information technology and computer systems;

(g) business, general and financial economics;

(h) mathematics and statistics;

(i) basic principles of the financial management of

undertakings.

(1) The Board shall cooperate with the competent

authorities of other Member States whenever necessary to carry out

the responsibilities arising from the Directive.

(2) The Board shall render assistance to competent

authorities in other Member States, in particular by exchanging

information and cooperating in investigations related to the carrying

out of statutory audits.

(3) The Board shall, on request, and without undue

delay supply any information required for the purpose referred to

in subregulation (1) and where necessary the Board shall without

undue delay, take the necessary measures to gather the required

information

Provided that at all times the information so supplied

shall be covered by the obligation of professional secrecy.

(4) If the Board is not able to supply the required

information without undue delay it shall notify the requesting

competent authority of the reasons thereof.

(5) The Board may refuse to act on a request of

information, after consulting the Minister, where

(a) supplying information might adversely affect the

sovereignty, security or public order of Malta or breach its

national security rules;

(b) judicial proceedings have already been initiated

in respect of the same actions and against the same auditors

before the Maltese authorities;

(c) final judgment has already been passed in respect

of the same actions and on the same auditors by the competent

authorities in Malta.

(6) Where the Board concludes that activities contrary

to the provisions of the Directive are being or have been carried

out on the territory of another Member State, it shall notify the

competent authority of the other Member State of that conclusion

in a specific manner.

(7) Where the competent authorities of another Member

State notify the Board that activities contrary to the provisions

of the Directive are or have been carried out in Malta, the Board

shall investigate the matter without undue delay and shall inform

the notifying competent authority of the outcome and, to the extent

possible, of significant interim developments.

(8) A competent authority of another Member State

may request that an investigation be carried out by the Board on

the Maltese territory. The competent authority of another Member

State may also request some of its own personnel to be allowed

to accompany the personnel of the Board in the course of the

investigation

Provided that the investigation shall at all times be subject

to the overall control of the Board.

(9) The Board may refuse to act on a request for an

investigation to be carried out as provided in subregulation (8) or

on a request for the Board’s personnel to be accompanied by the

personnel of a competent authority of another Member Sate where

(a) such an investigation might adversely affect the

sovereignty, security or public order of Malta; or

(b) judicial proceedings have already been initiated in

respect of the same actions and against the same person before

the authorities of Malta; or

(c) final judgment has already been passed in respect of

the same actions on such persons by the authorities of Malta.

(10) Any information received by the competent

authorities of other Member States pursuant to provisions of this

article shall only be used by the competent authorities of the other

Member State for the exercise of their functions within the scope

of the Directive and in the context of administrative or judicial

proceedings specifically related to the exercise of those functions.

(1) Auditors registered in accordance with the Act may

transfer to the competent authorities of a third-country audit working

papers or other documents held by them, provided that

(a) those audit working papers or other documents relate

to audits of companies which have issued securities in that

third-country or which form part of a group issuing statutory

consolidated accounts in that third-country;

(b) the transfer takes place via the Board to the

competent authorities of that third-country at their request;

(c) the competent authorities of the third-country

concerned meet requirements which have been declared

adequate in accordance with paragraph 3 of article 47 of the

Directive;

(d) there are working arrangements on the basis

of reciprocity agreed between the competent authorities

concerned;

(e) the transfer of personal data to the third-country is

in accordance with Chapter IV of Directive 95/46/EC or any

amending legislation.

(2) The working arrangements referred

to

in

subregulation 1(d) shall at all times ensure that

(a) justification as to the purpose of the request for

audit working papers and other documents is provided by the

competent authorities;

(b) the persons employed or formerly employed by

the competent authorities of the third-country that receive the

information are subject to obligations of professional secrecy;

(c) the competent authorities of the third-country may

use audit working papers and other documents only for the

exercise of their functions of public oversight, quality assurance

and investigation that meet requirements equivalent to those of

article 29, 30 and 32 of the Directive;

(d) the request from a competent authority of a third

country for audit working papers or other documents held

by a statutory auditor or audit firm can be refused where

the provision of those working papers or documents would

adversely affect the sovereignty, security or public order of

the European Community or of the requested Member State

or where judicial proceedings have already been initiated in

respect of the same actions and against the same persons before

the authorities of the requested Member State.

(3) In exceptional cases, the Board may allow auditors

to transfer audit working papers and other documents directly to the

competent authorities of a third-country, if the following conditions

are satisified

(a) investigations have been initiated by the competent

authorities in that third-country;

(b) the transfer does not conflict with the obligations

with which auditors are required to comply in relation to the

transfer of audit working papers and other documents to their

home competent authority;

(c) there are working arrangements with the competent

authorities of that third-country that allow the Board reciprocal

direct access to audit working papers and other documents of

that third-country’s audit entities;

(d) the requesting competent authority of the third-

country informs in advance the home competent authority of

the auditor of each direct request for information including the

reasons therefor; and

(e) the conditions laid down in subregulation (2) are

respected.

(4) The Board shall be empowered to issue directives on

the applicability and proper interpretation of this regulation and shall

lay down the criteria for determining the assessment of adequacy

referred to in this regulation and the meaning of “exceptional cases”

in subregulation (3).

In the case of a statutory audit of the consolidated accounts

of a group of undertakings

(a) the group auditor shall bear the full responsibility

for the audit report in relation to the consolidated accounts;

(b) the group auditor shall carry out, review and maintain

documentation of his review of the audit work performed by

auditors, third-country auditors and third–country audit entities

for the purpose of the group audit. The documentation retained

by the group auditor shall be such as to enable the Board to

review the work of the group auditor properly;

(c) when a component of a group of undertakings is

audited by a third-country auditor or a third-country audit

entity that has no working arrangement as referred to in

subregulation 9(3)(c), the group auditor shall be responsible

for ensuring proper delivery, when requested, to the Board

of the documentation of the audit work performed by the

third-country auditor or third-country audit-entity, including

the working papers relevant to the group audit. To ensure

such delivery, the group auditor shall retain a copy of such

documentation, or alternatively agree with the third-country

auditor or third-country audit-entity his proper and unrestricted

access upon request, or take any other appropriate action

Provided that if legal or other impediments prevent audit

working papers from being passed from a third-country to the

group auditor, the documentation retained by the group auditor

shall include evidence that he has undertaken the appropriate

procedures in order to gain access to the audit documentation,

and in the case of non-legal impediments, evidence supporting

such an impediment.

Any disciplinary committee appointed by the Accountancy

Board in terms of article 7(16) of the Act shall in any enquiry for the

purposes of article 15 of the Act follow the procedure set out in the

rules of procedure set out in the Schedule.

The Accountancy Profession Regulations, 1987 are

hereby being revoked.

The proceedings on an inquiry shall be as follows

(a) Witnesses in support of the charge shall be produced

and examined by the party producing them or in his absence by

the disciplinary committee and cross-examined by the warrant

holder or practising certificate holder; thereafter any member

of the Board may put questions as he may deem necessary.

(b) Witnesses in defence shall be heard and in case

the warrant holder or practising certificate holder wishes to

give his evidence, he may do so provided that his evidence

shall be given before that of any witness to be produced by

him. Witnesses shall be examined by the warrant holder or

practising certificate holder or by the person by whom he is

assisted or represented and cross-examined by any other party

to the proceedings; thereupon any member of the disciplinary

committee may put questions as he may deem necessary.

(c) When the whole of the evidence has been concluded,

the warrant holder or practising certificate holder may,

personally or through the person by whom he is assisted or

represented, address the disciplinary committee and make his

defence.

(d) The disciplinary committee shall then give its

decision including the imposition of any penalty as it may

determine on that day or on any other day appointed for the

purpose.

(e) The disciplinary committee shall not be debarred at

any stage of the proceedings until the decision is given from

re-examining any witness or requesting the production of any

documents.

In all cases where the disciplinary committee is satisfied

that the charge or charges have or have not been proved, the

disciplinary committee shall decide accordingly and it shall record

a finding that the charge or charges have or have not been proved

and that the warrant holder or practising certificate holder is or is

not guilty in respect of the matters to which the charge or charges

relate.

(1) The decisions of the disciplinary committee shall be

given in public and in writing; they shall be signed by the Chairman

of the disciplinary committee.

(2) The original shall be forwarded by the Secretary to

the Board together with the complete record of the inquiry. The Board

shall, in the case of a revocation or withdrawal of a warrant give its

advice in writing to the Minister to give effect to the decisions of the

disciplinary committee. A copy of any decision of the disciplinary

committee, certified as a true copy by the Chairman of the Board,

shall be forwarded by the Secretary to the Minister, and in the case of

revocation or cancellation of a warrant, the Secretary shall forward

to the Minister the Board’s advice in writing.

(3) On receipt of the decision of the disciplinary

committee and of the advice of the Board, the Minister shall give

effect to the decision and act in terms of article 15 of the Act.

Where under any of the foregoing provisions of these

rules the inquiry stands postponed to a future meeting, the validity of

the proceedings at that meeting shall not be called into question by

reason only that members of the disciplinary committee who were

present at the former meeting were not present at the later meeting

or that members of the disciplinary committee who were present at

the later meeting were not present at the former meeting.

The Secretary shall serve without delay on the warrant

holder or practising certificate holder a copy of the decision of the

disciplinary committee.

Notice to any person to appear before the disciplinary

committee to give evidence and/or produce documents shall be in

the form set out in Form B contained in the Appendix hereto.

Every notice referred to in these rules shall be signed by

the Chairman.

It shall be within the authority of the disciplinary

committee during the proceedings –

(a) to maintain good order; and

(b) regulate the discussion.

The members of any disciplinary committee, the Board

and the Secretary shall not divulge anything discussed by the

disciplinary committee or the Board in the course of an inquiry.

(1) The provisions of the Inquiries Act shall apply to

the disciplinary committee in any inquiry held according to these

regulations.

(2) Subject as otherwise expressly provided and in

particular to sub-rule (1), the disciplinary committee shall regulate

its own procedure.

APPENDIX

Rules 5(4), 18

FORM A

ACCOUNTANCY BOARD

Notice of Inquiry

To ......................................................................…… (date)

I hereby give you notice that the Accountancy Board has

ordered an inquiry to consider and judge the charge/charges imputed

to you, namely ...................................................................................

You are hereby informed that the first sitting of the said inquiry

will be held on ................... the ........................ at .........................

The Accountancy Board has nominated the following

individuals as members of the disciplinary committee that will

conduct the inquiry in respect of the above charge/charges

.................................................................................................……..

.................................................................................................……..

.................................................................................................……..

The Disciplinary Committee shall be chaired by the above-

mentioned ....................................................................................…..

A copy of the Accountancy Profession Rules of Procedure is

enclosed for your guidance.

You are warned that failure on your part to appear without

giving a reasonable explanation for your absence would not debar

the disciplinary committee from proceeding with the inquiry in your

absence.

Chairman

Accountancy Board

FORM B

ACCOUNTANCY BOARD

Notice to a Person to give Evidence and/or

to produce documents, etc.

To ...................................................……........... (date)

You are hereby required to attend before the disciplinary

committee nominated by the Accountancy Board on ......................

the ................................ at .................... and so on any other day

to which the hearing may be put off, to give evidence and/or to

produce the following documents: ............................................……

.........................................................................................………….

in the matter of an inquiry held against .........................................

………...

You are warned that failure to attend as hereby required will

expose you to sanctions prescribed by law.

Chairman

Accountancy Board

€1.12