Allegations of a "serious financial nature" against a UKIP MEP and
general election candidate "couldn't look worse", Nigel Farage has said.
She was suspended after a Sun newspaper investigation into an expenses claim by a member of her staff.
Party leader Mr Farage said: "It looks very bad - it couldn't look worse and I'm astonished by it."
He told the BBC a disciplinary hearing would be held "early next week".
Ms Atkinson has not responded to requests for comment.
'Couldn't believe it' The newspaper has published a secret recording appearing to show Janice Atkinson's chief of staff, Christine Hewitt, speaking to the manager of a restaurant in Margate, Kent, before UKIP's spring conference.
In the footage, she appears to ask for an invoice for a much higher sum than the bill she had received.
Ms Hewitt is heard to say: "The idea is we overcharge them slightly, because that's the way we repatriate it."
A member of the hotel staff replies: "3,150, is that all right? Yeah, if you're all right with that? Is that enough for you?"
Ms Hewitt then says: "Oh God yeah, that's more than enough."
It is not known whether Ms Atkinson knew or authorised her staff member's apparent actions.
The BBC has been unable to contact Ms Hewitt for comment.
Mr Farage said it was too early to say whether Ms Atkinson would be allowed to run for UKIP in Folkestone and Hythe.
He said: "I spoke to her [Ms Atkinson] after midnight and she said it was all to do with bills and fundraising - I was frankly confused by it all."
He added: "I simply couldn't believe it - how on earth could anyone think they could behave like this."
Kent Police said it had not received any reports relating to the newspaper's allegations.
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