[Words preceding section 48(1)(a) substituted by section 15(a) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (a) | on reasonable grounds suspects that a registered auditor has committed an act which may render him or her guilty of improper conduct; or |
| (b) | is of the opinion that a complaint or allegation of improper conduct, whether prescribed or not, which has been made against a registered auditor by any person appears to be justified. |
(1A)
| (a) | Despite subsection (1), the enforcement committee referred to in section 24B may, if considered appropriate, refer a non-audit matter brought against a registered auditor to the relevant professional body accredited in terms of section 32(2) for investigation and disciplinary proceedings. |
| (b) | The enforcement committee may only a refer a non-audit matter in terms of paragraph (a) if it is a matter that falls within the constitution and rules of the professional body. |
[Section 48(1A) inserted by section 15(b) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (a) | If, in the course of any proceedings before any court of law, it appears to the court that there is prima facie proof of improper conduct on the part of a registered auditor the court must direct a copy of the record of the proceedings, or such part thereof as relates to that conduct, to be sent to the Regulatory Board. |
| (b) | Despite the provisions of any other law, whenever it appears to an appropriate regulator that there is prima facie proof of improper conduct on the part of a registered auditor, the official must forthwith send a report of that conduct to the Regulatory Board. |
| (c) | The Regulatory Board must refer to the investigation committee any record or report received by it under this subsection. |
[Section 48(2)(c) substituted by section 15(c) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (3) | At the request of the Regulatory Board, the investigating committee must— |
| (a) | investigate the matter; and |
| (b) | obtain evidence to determine whether or not in its opinion the registered auditor concerned should be charged and, if so, recommend to the enforcement committee the charge or charges that may be preferred against that registered auditor. |
[Section 48(3)(b) substituted by section 15(d) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (4) | The investigating committee may not question the registered auditor concerned unless the investigating committee informs the registered auditor that he or she— |
| (a) | has the right to be assisted or represented by another person; and |
| (b) | is not obliged to make any statement and that any statement made may be used in evidence against the registered auditor. |
| (a) | In investigating a charge of improper conduct the investigating committee may— |
| (i) | require or, if necessary, subpoena, the registered auditor to whom the charge relates or any other person with specific knowledge of the matter under investigation to produce to the committee any object or information, including but not limited to any working papers, statements, correspondence, books or other documents, which is in the possession or under the control of that registered auditor or other person and which relates to the subject matter of the charge, including specifically, but without limitation, any working papers of the registered auditor; |
| (ii) | inspect and, if the investigating committee considers it appropriate, retain any such information for the purposes of its investigations; and |
| (iii) | make copies of and take extracts from such information. |
| (b) | The obligation to produce any information under paragraph (a)(i) may not be excused by reason of any alleged confidential information of a client contained therein. |
| (c) | A subpoena issued in terms of paragraph (a)(i) must— |
| (i) | be in the prescribed form; |
| (ii) | be signed by an authorised official of the Regulatory Board; and |
| (iii) | be served on the person concerned. |
| (d) | For purposes of this section, service contemplated in paragraph (c)(iii)— |
| (i) | at the last known address appearing from the Regulatory Board’s records; or |
| (ii) | effected in any manner agreed upon between the an employee authorised by or the investigating committee and the person or registered auditor being subpoenaed, constitutes proper service. |
| (e) | A person who has been issued with a subpoena under paragraph (a)(i) may not, without just cause, fail to provide the information, working paper, statement, correspondence, book or other document specified in the subpoena, in his or her possession or custody or control which he or she has been required to produce. |
| (f) | The law relating to privilege, as applicable to a witness subpoenaed to provide a book, document or object in a civil trial before a court applies, with the necessary changes, in relation to the production of any object or information, including but not limited to any working papers, statements, correspondence, books or other documents, to the investigating committee. |
| (g) | A person subpoenaed in terms of this section is not entitled to payment by the Regulatory Board for providing information to the investigating committee. |
[Section 48(5) substituted by section 15(e) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (6) | Nothing in this section limits or affects the right of any professional body to take disciplinary or other action against any of its members in accordance with its constitution and rules after the finalisation of the matter by the Regulatory Board. |
[Section 48(6) substituted by section 15(e) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (7) | The investigating committee must, after the conclusion of the investigation, submit a report stating its recommendations to the enforcement committee regarding any matter referred to it in terms of this section. |
[Section 48(7) substituted by section 15(e) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (8) | The Regulatory Board and investigating committee must in exercising their powers or performing their duties in terms of this section consider the delegation or assignment of such powers and duties in accordance with section 19. |
