The Financial Reporting Council (FRC) is to consult on how committees and tribunals will administer sanctions for poor audit work under a new set of procedures.

The regulator has published a consultation paper on sanctions guidance which proposes a principles-based rather than a tariff-based approach. The FRC says this will allow disciplinary bodies to have a flexible approach to determining a particular sanction and allows for the exercise of discretion.

The draft paper follows a consultation in December 2012 on the proposed Auditor Regulatory Sanctions Procedure which set out how the FRC's new regulatory regime will operate. The possible range of sanctions included under the new procedure include restrictions and/or conditions on practice; a regulatory penalty, which is a fine of an amount determined by the committee or tribunal; suspension of registration; or withdrawal of registration.

FRC CEO Stephen Haddrill said: 'By sanctioning poor quality audit work we can further encourage firms and individuals to produce top quality audits and enhance trust in the audit profession. This new Guidance sets out a clear approach for committees and tribunals that ensures transparency and consistency in administering sanctions.'

Responses should be sent by 10 July 2013 to [email protected].