Section 78: Power of investigation

78. Power of investigation (1) The Council may investigate or cause to be investigated— (a) any complaint of dishonest practice, negligence, professional misconduct, or malpractice made against a licensed auditor; or (b) any breach of the Code of Professional Conduct and Ethics by a licensed auditor; or (c) any material irregularity notified to it pursuant to section 40 (2). (2) Where the Council investigates a complaint— (a) it shall notify the auditor whose conduct, act or omission is under investigation, of the nature of the complaint; (b) it may summon and hear the auditor; (c) it may summon and hear witnesses; (d) it may call for relevant documents and make such copies thereof as it thinks fit; and (e) it may review any financial statement and report filed with any Government department or authority. (3) Every public interest entity or auditor shall, subject to subsections (4) and (5), produce any relevant book, record or document in his possession or under his control to the Council where the Council is conducting an investigation for the purposes of subsection (1). (4) A person may refuse to answer a question put to him or refuse to furnish any information, document, record or book, where the answer to the question or the production of the document, record or book might tend to incriminate him. (5) Nothing in this section shall be taken to compel the production by the auditor, the public interest entity or its officer of any book, document, record or any other material containing— (a) any information which is confidential under the Banking Act or any other enactment; and (b) privileged communication by or to a legal practitioner in that capacity, except in so far as the disclosure of the information is made according to law. F9 – 35 [Issue 5] Financial Reporting Act (6) The Council shall refer the findings of any investigation under subsection (1) to the Enforcement Panel for the determination of the appropriate sanction to be imposed.