The Audit Registration Committee is responsible for considering and determining applications for audit registration and any regulatory action required as a result of monitoring visit reports affecting its area of responsibility. It is appointed by the Council pursuant to Principal Bye-law 49(a).
The committee carries out its responsibilities within the framework of the general duties and procedural requirements for committees set out in Annex 6 of the Scheme of Delegations. It also carries out its responsibilities in accordance with the Audit Regulations, its terms of reference and any guidance issued by the ICAEW Regulatory Board (IRB).
The committee comprises of not less than eight members, of whom at least half must be lay members. Members are appointed for a term of three years which may be renewed once, with a further option for extension for one additional term.
The committee may not include any person who is a member of the Investigation, Disciplinary or Appeal Committees. Members of Council do not serve on the committee.
For accountant members, the ARC offers a chance to give back to the profession and do their bit to raise standards amongst auditors, but also to gain an insight into some of the challenges they may come up against in their professional lives.
Function of the committee
Council has delegated operational responsibility for the following activities to the Committee, which are set out in detail in the Audit Regulations:
- granting or rejecting applications for Registered Auditor status;
- withdrawing or suspending registration;
- imposing conditions or restrictions on a Registered Auditor;
- granting or refusing dispensation from eligibility requirements;
- reviewing returns and reports and investigating any failure to make such returns and reports;
- making enquiries re: eligibility and compliance;
- publishing orders and decisions;
- maintaining the Register of Auditors.
The Committee is also responsible for discharging the functions set out the Crown Dependencies’ Rules and Guidance, and the ICAEW Licensed Practice Handbook. In addition, the Committee is responsible for providing guidance to firms in relation to any matters associated with audit regulation and recommending matters for consideration by the Joint Audit Committee.
Operation of the committee
The committee normally meets every five weeks, usually at Chartered Accountants’ Hall. A meeting will be quorate if at least two ICAEW members and two lay members are present.
At each meeting, the committee is assisted by a committee administrator and a committee secretary. The committee secretary is a solicitor who supports the committee by providing both legal and procedural advice, when required.
The committee may also seek advice from any source that it considers appropriate to enable it to discharge its responsibilities.
The committee may delegate its powers to a sub-committee (for instance to enable urgent matters to be considered promptly).