Part IThe Environment Agency and the Scottish Environment Protection Agency

Chapter IIIMiscellaneous, General and Supplemental Provisions Relating to the New Agencies

General financial provisions

46Audit

(1)

The accounts of each new Agency shall be audited by an auditor appointed for each accounting year by the Secretary of State.

(2)

A person shall not be qualified for appointment under subsection (1) above unless—

(a)

he is eligible for appointment as a company auditor under Part II of the M1Companies Act 1989; and

(b)

he would not be ineligible for appointment as company auditor of the new Agency in question by virtue of section 27 of that Act (ineligibility on ground of lack of independence), if that new Agency were a body to which section 384 of the M2Companies Act 1985 (duty to appoint auditor) applies.

(3)

A copy of—

(a)

any accounts of a new Agency which are audited under subsection (1) above, and

(b)

the report made on those accounts by the auditor,

shall be sent to each of the appropriate Ministers as soon as reasonably practicable after the report is received by the new Agency; and the Secretary of State shall lay before each House of Parliament a copy of those accounts and that report.

(4)

The Comptroller and Auditor General—

(a)

shall be entitled to inspect the contents of all accounts and accounting records of a new Agency; and

(b)

may report to the House of Commons the results of any inspection carried out by him under paragraph (a) above;

and section 6 of the M3National Audit Act 1983 (examinations of economy, efficiency and effectiveness) accordingly applies to each new Agency.

(5)

In this section—

“accounting records” has the same meaning as in section 45 above;

“accounting year” has the same meaning as in section 45 above;

“accounts”, in relation to the Agency, includes any statement under section 45 above.