Section 36CC: Penalty, sanctions or revocation of registration

36CC. Penalty, sanctions or revocation of registration.—(1) Subject to sub­section (2), if an audit firm fails to comply with the requirement of this Part or any regulations made there­under, or if so recommended by the QAB based upon its findings, AOB may after providing opportunity of hearing,— (a) impose penalty which may extend to five million Rupees; (b) impose following sanctions; (i) such audit firm may be barred from engaging itself as auditor of the public interest companies for a minimum period of six months or for such higher period not exceeding five years as may be decided by AOB; or (ii) revoke registration and remove name from the register of auditor of public interest companies; (c) reprimand, issue warnings or such other sanctions as deemed necessary or appropriate under the circumstances; or (d) publish or place its findings of inspections of registered firms on its website. (2) The power to impose penalty under sub­section (1) shall be in addition to the power of the Commission to impose penalty or file compliant for prosecution in respect of an offence specified in any provisions of the Ordinance relating to the auditors. (3) AOB shall give opportunity to be heard through show cause notice to the registered audit firm prior to imposing any penalty, sanctions or revocation of registration under this Part, regulations and give reasons for its decision.] PART X COGNIZANCE AND PROSECUTION OF OFFENCES

Effective date: 1997-01-01

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