s 1229 Supervision of Auditors General by the Independent Supervisor
(1) The Independent Supervisor must supervise the performance by each Auditor General of his functions as a statutory auditor. (2) The Independent Supervisor must discharge that duty by— (a) establishing supervision arrangements itself, or (b) entering into supervision arrangements with one or more recognised supervisory bodies . (2A) If the Independent Supervisor enters into supervision arrangements with one or more bodies, it must oversee the effective operation of those supervision arrangements. (3) For this purpose “supervision arrangements” are arrangements established by the Independent Supervisor or entered into by the Independent Supervisor with a body, for the purposes of this section, in accordance with which the Independent Supervisor or the body does . . . the following— (a) determines standards relating to professional integrity and independence which must be applied by an Auditor General in statutory audit work; (b) determines technical standards which must be applied by an Auditor General in statutory audit work and the manner in which those standards are to be applied in practice; (c) monitors the performance of statutory audits carried out by an Auditor General; (d) investigates any matter arising from the performance by an Auditor General of a statutory audit; (e) holds disciplinary hearings in respect of an Auditor General which appear to be desirable following the conclusion of such investigations; (f) decides whether (and, if so, what) disciplinary action should be taken against an Auditor General to whom such a hearing related. (3A) The requirements of paragraphs 9 to 10C and 12 to 16 of Schedule 10 (requirements for recognition of a supervisory body) apply in relation to supervision arrangements as they apply in relation to the rules, practices and arrangements of supervisory bodies. (4) The Independent Supervisor may enter into supervision arrangements with a body despite any relationship that may exist between the Independent Supervisor and that body. (5) The Independent Supervisor must notify each Auditor General in writing of any supervision arrangements that it establishes or enters into under this section. (5A) The Independent Supervisor must, at least once in every calendar year, deliver to the Secretary of State a summary of the results of any inspections conducted for the purposes of subsection (3)(c). (6) Supervision arrangements within subsection (3)(f) may, in particular, provide for the payment by an Auditor General of a fine to any person or, in the case of the Auditor General for Wales, for payment by the Wales Audit Office of such a fine . (7) Any fine received by the Independent Supervisor under supervision arrangements is to be paid into the Consolidated Fund.