| (a) | who subsequent to registration becomes subject to any of the disqualifications mentioned in section 37(3); |
| (b) | whose registration was made in error or on information subsequently proved to be false; or |
| (c) | who prior to registration has been guilty of improper conduct because of which the registered auditor or registered candidate auditor is, in the opinion of the Regulatory Board not a fit and proper person to be registered. |
| (2) | Subject to subsection (3), the Regulatory Board may cancel the registration of any registered auditor that is an individual or any registered candidate auditor, and— |
| (a) | whose estate is sequestrated or provisionally sequestrated or who enters into a compromise with creditors or who has applied for debt review; or |
[Section 39(2) substituted by section 12 of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (3) | Prior to canceling a registration, the Regulatory Board must give notice in writing to the registered auditor or registered candidate auditor concerned of its intention to cancel and the reasons on which it is based, and afford the registered auditor or registered candidate auditor a period of not less than 21 days and not more than 30 days in which to submit grounds for not proceeding with cancellation. |
| (4) | The registration of a registered auditor that is a partnership, sole proprietor or company automatically lapses if it no longer complies with section 38(1). |
| (5) | The registration of a registered auditor or registered candidate auditor automatically lapses if such registered auditor or registered candidate auditor fails to pay a prescribed fee or portion thereof within the period prescribed by the Regulatory Board. |
| (6) | At the written request of a registered auditor or registered candidate auditor, the Regulatory Board must remove the name of the registered auditor or registered candidate auditor from the applicable register, but the removal does not affect any liability incurred by the registered auditor or registered candidate auditor prior to the date of the removal. |
| (7) | The fact that the registration of a registered auditor auditor or registered candidate auditor has been cancelled or removed does not prevent the Regulatory Board from instituting disciplinary proceedings for conduct committed prior to the cancellation or removal. |
| (8) | As soon as practicable after the registration of a registered auditor or registered candidate auditor has been cancelled or removed the Regulatory Board must publish a notice of the cancellation or removal, specifying the name of the registered auditor or registered candidate auditor. |
[Section 39 substituted by section 7 of Act No. 2 of 2015]
