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What are the Rules?

 

The AOL requires the AOA to make and publish Rules to ensure “that a recognized auditor, when auditing a market traded, designated or Authority specified company, is subject in the Islands to a system of oversight, quality assurance and investigation.”

 

The Rules set standards that recognized auditors must follow and are a key part of the AOA’s system of oversight and quality assurance.  The Rules also govern certain aspects of the interaction between the AOA and those under its regulation and supervision, including establishing appeals and dispute resolution procedures.

 

The Rules should be read in conjunction with the AOL.  Nothing in the Rules is intended to nor shall it limit the powers of the Authority under the AOL.

 

The Rules contain the following sections:

 

General:

  • Purpose of the Authority
  • Scope and status of the Rules
  • Rule making procedures
  • Definitions and Interpretations
  • Dispensation
  • Notifications
  • Cooperation with overseas auditor oversight bodies

 

Registration, Withdrawal and Suspension of Registration

  • Registration
  • Changes in circumstances
  • Withdrawal from the Register
  • Cessation of registration – continuing obligations
  • Reinstatement on the Register
  • Suspension of registration

 

Professional Standards and Conduct of Audit Work

  • Technical standards
  • Independence and integrity
  • Responsible individuals
  • Audit reports

 

Inspections

  • Timing and proceedings
  • Inspection reports
  • Identified weaknesses and deficiencies
  • Violation Events
  • Reliance on inspections made by others
  • Cooperation with overseas auditor oversight bodies

 

Investigations

  • Investigation orders
  • Petition for review
  • Conduct of Investigations
  • Discretionary submissions to the Authority in connection with an Investigation
  • Investigation findings
  • Reliance on investigations made by others
  • Cooperation with overseas auditor oversight bodies

 

Disciplinary Actions

  • Requirements, restrictions and sanctions
  • Notification of proposed disciplinary action
  • Petition for review
  • Notification that disciplinary action is in effect
  • Termination of a disciplinary action by the Authority
  • Application for termination of disciplinary action
  • Failure to comply with disciplinary actions
  • Disclosure of continuing restrictions or sanctions
  • Reliance on disciplinary action taken by others
  • Urgent orders

 

Review Proceedings

  • Orders for review proceedings
  • Composition of review panels
  • Proceedings of review panels
  • Review panel costs
  • Appeals against review panel decisions

 

Fees

 

 

Rule making procedures

 

The AOA can create Rules or amend existing Rules as it considers appropriate.

 

Before doing so it will expose proposed new or amended Rules on this website for not less than 20 business days to allow for public comment.

 

Recognized auditors and other interested parties may request us to notify them by email when a draft of a proposed new or amended Rule has been exposed on the website.

 

Obligations to comply with the Rules

 

Recognized auditors must comply with the Rules. In certain instances the Rules continue to apply notwithstanding that registration has ceased.

 

Failure to comply with the Rules

 

The AOA will monitor the compliance of auditors with the Rules and may take disciplinary action against an auditor when a breach of the Rules occurs.

 

The Rules provide the AOA with a wide range of sanctions or other remedial actions which it may impose when it considers it appropriate to do so. Ultimately, subject to an appeal to the courts, the AOA has the power to revoke a recognized auditor’s registration to audit market traded, designated or Authority specified companies.

 

Required notifications to the AOA under the Rules

 

The Rules require that recognized auditors make periodic returns and provide certain notifications to the AOA, as does the AOL. A summary can be found here [obligations of recognized auditors]

 

Where can I find a copy of the Rules?

 

Here:    AOA Rules (1 December 2014)

 

 

Questions about the Rules

 

Questions regarding the Rules should be directed to the AOA’s Managing Director whose contact information can be found here [contact information]