Section 38Part 6 — QUALITY ASSURANCE
Oversight procedures
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For the purposes of this section —
"relevant sole practitioner" means a sole practitioner public accountant who is the holder of a licence issued under section 11 or 12; and
"relevant firm" means a firm of public accountants where the partners, directors or persons holding an equivalent position in the firm are the holders of a licence issued under section 11 or 12.
A relevant sole practitioner and a relevant firm shall comply with the system of oversight, quality assurance and investigation imposed by the Institute.
A relevant sole practitioner and a relevant firm shall make an application in the prescribed manner and pay the prescribed fee to be registered with the Institute as a sole practitioner or firm which is subject to the Institute's system of oversight, quality assurance, investigation and penalties.
Registration under subsection (3) is valid for one year and shall be renewed annually.
Registration under this section may be renewed by submitting an application for renewal of registration in the prescribed manner and paying the prescribed fee by a date specified by the Council.
A relevant sole practitioner or a relevant firm may apply to the Council to surrender registration if it —
no longer meets the definition of being a relevant sole practitioner or a relevant firm;
has ceased to engage in public practice; or
is being wound up voluntarily and produces evidence that it is solvent and immediately able to repay all its creditors, and where the application is made, the Council may require the applicant to submit evidence to verify information in the application and may approve the surrender and cancel the registration.
A relevant sole practitioner or a relevant firm who contravenes subsection (3) commits an offence and is liable on summary conviction to a fine of ten thousand dollars; and if the offence for which the relevant sole practitioner or the relevant firm is convicted is continued after conviction the relevant sole practitioner or the relevant firm commits a further offence and is liable to a fine of one hundred dollars for each day on which the offence is so continued.
Where an offence, committed by a relevant firm under subsection (6), is proved to have been committed with the consent or connivance of, or to have been attributable to neglect by a partner, director, manager, secretary or other similar officer of the relevant firm or person who was purporting to act in any of the foregoing capacities, that person is also considered to have committed the offence and is liable to be proceeded against and penalised in accordance with subsection (6).
The Institute may, on terms approved by the Council, delegate, in whole or in part, any of its functions under this section to any person the Council considers necessary for the better exercise of the function.
The Institute shall not delegate a function under this section to a person unless the person has —
experience in —
regulating public accountants;
assisting regulatory authorities in their supervision and investigation of public accountants and their professional activities; and
assessing accounting and assurance standards of regulatory oversight bodies; and
adequate knowledge in areas relevant to audit and assurance.
Defined Terms
relevant sole practitionerrelevant firm
Cross References
- Section 11 of Accountants Act
section 11
- Section 12 of Accountants Act
section 12
Referenced By
- Section 7 — Registrar and the register
section 7 references firm registration under section 38(3)
- Section 11 — Licensing of Caymanians and permanent residents
section 11(1) references firm registration under section 38
- Section 12 — Licensing of work permit holders
section 12(1) references firm registration under section 38