Words in s. 40(1) substituted (1.4.2015) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 102(2); S.I. 2015/841, art. 3(x) (with Sch. para. 10) (as amended (27.6.2016) by S.I. 2016/675, art. 2)

Words in s. 40(2)-(4) substituted (1.4.2015) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 102(3); S.I. 2015/841, art. 3(x) (with Sch. para. 10) (as amended (27.6.2016) by S.I. 2016/675, art. 2)

Words in Act substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), Sch. 4 para. 149 (with Sch. 5)

Words in s. 40(4) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 150 (with Sch. 5)

Words in s. 40(5) substituted (1.4.2015) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 102(4); S.I. 2015/841, art. 3(x) (with Sch. para. 10) (as amended (27.6.2016) by S.I. 2016/675, art. 2)

http://www.legislation.gov.uk/ukpga/2009/20/section/40Local Democracy, Economic Development and Construction Act 2009An Act to make provision for the purposes of promoting public involvement in relation to local authorities and other public authorities; to make provision about bodies representing the interests of tenants; to make provision about local freedoms and honorary titles; to make provision about the procedures of local authorities, their powers relating to insurance and the audit of entities connected with them; to establish the Local Government Boundary Commission for England and to make provision relating to local government boundary and electoral change; to make provision about local and regional development; to amend the law relating to construction contracts; and for connected purposes.texttext/xmlenStatute Law Database2024-06-28Expert Participation2024-05-07Part 2Local authorities: governance and auditChapter 3Audit of entities connected with local authoritiesPower to appoint auditor
40Exclusions(1)

The Auditor General for Wales may not make an appointment under this Chapter in relation to an entity for a financial year if, by virtue of this section, the entity is exempt from audit for that year.

(2)

A company is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that, for the purposes of Part 16 of the Companies Act 2006 (c. 46), the company is or will be exempt from audit under that Part for that year.

(3)

A limited liability partnership is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that, for the purposes of Part 16 of the Companies Act 2006 (as that Part applies to limited liability partnerships), the partnership is or will be exempt from audit under that Part for that year.

(4)

A registered society is exempt from audit under this Chapter for a financial year if it appears to the Auditor General for Wales that

(a)

the society is a small society (within the meaning of Part 7 of the Co-operative and Community Benefit Societies Act 2014) for that year, or

(b)

section 83 of that Act (duty to appoint auditors) does not apply to the society for that year because of a resolution under section 84 of that Act (power to disapply auditing requirements).

(5)

Subsection (1) does not apply if the entity requests the Auditor General for Wales to make the appointment.

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<ref eId="c17whl193-00010" href="http://www.legislation.gov.uk/id/uksi/2015/841">S.I. 2015/841</ref>
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<ref eId="c17whl193-00013" href="http://www.legislation.gov.uk/id/uksi/2016/675">S.I. 2016/675</ref>
, art. 2)
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<ref eId="c17whl193-00038" href="http://www.legislation.gov.uk/id/uksi/2015/841">S.I. 2015/841</ref>
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<ref eId="c17whl193-00041" href="http://www.legislation.gov.uk/id/uksi/2016/675">S.I. 2016/675</ref>
, art. 2)
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Words in Act substituted (1.8.2014) by
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<p>
Words in s. 40(4) substituted (1.8.2014) by
<ref eId="cvi44tmp2-00007" href="http://www.legislation.gov.uk/id/ukpga/2014/14">Co-operative and Community Benefit Societies Act 2014 (c. 14)</ref>
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<ref eId="cvi44tmp2-00008" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2014/14/section/154">s. 154</ref>
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<p>
Words in
<ref eId="c17whl193-00020" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2009/20/section/40/5">s. 40(5)</ref>
substituted (1.4.2015) by
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<ref eId="c17whl193-00022" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2014/2/section/49/1">s. 49(1)</ref>
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<ref eId="c17whl193-00024" href="http://www.legislation.gov.uk/id/uksi/2015/841">S.I. 2015/841</ref>
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<ref eId="c17whl193-00027" href="http://www.legislation.gov.uk/id/uksi/2016/675">S.I. 2016/675</ref>
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<b>Part 2</b>
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<heading>Local authorities: governance and audit</heading>
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<num>Chapter 3</num>
<heading>Audit of entities connected with local authorities</heading>
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<i>Power to appoint auditor</i>
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<num>40</num>
<heading>Exclusions</heading>
<subsection eId="section-40-1">
<num>(1)</num>
<content>
<p>
<ins class="substitution first last" ukl:ChangeId="key-fdb0f8bec82320989b9a71361b2aa9c5-1531586886997" ukl:CommentaryRef="key-fdb0f8bec82320989b9a71361b2aa9c5">
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The Auditor General for Wales
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may not make an appointment under this Chapter in relation to an entity for a financial year if, by virtue of this section, the entity is exempt from audit for that year.
</p>
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<num>(2)</num>
<content>
<p>
A company is exempt from audit under this Chapter for a financial year if it appears to the
<ins class="substitution first last" ukl:ChangeId="key-7b7c0b5971bf176796ad3f8bb7b4768d-1531586928577" ukl:CommentaryRef="key-7b7c0b5971bf176796ad3f8bb7b4768d">
<noteRef uk:name="commentary" href="#key-7b7c0b5971bf176796ad3f8bb7b4768d" class="commentary"/>
Auditor General for Wales
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that, for the purposes of Part 16 of the Companies Act 2006 (c. 46), the company is or will be exempt from audit under that Part for that year.
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<content>
<p>
A limited liability partnership is exempt from audit under this Chapter for a financial year if it appears to the
<ins class="substitution first last" ukl:ChangeId="key-7b7c0b5971bf176796ad3f8bb7b4768d-1531586948007" ukl:CommentaryRef="key-7b7c0b5971bf176796ad3f8bb7b4768d">
<noteRef uk:name="commentary" href="#key-7b7c0b5971bf176796ad3f8bb7b4768d" class="commentary"/>
Auditor General for Wales
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that, for the purposes of Part 16 of the Companies Act 2006 (as that Part applies to limited liability partnerships), the partnership is or will be exempt from audit under that Part for that year.
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<intro>
<p>
<ins class="substitution first last" ukl:ChangeId="key-0cf5b5269b4081c6addeb81e0bfe7fca-1519140131804" ukl:CommentaryRef="key-0cf5b5269b4081c6addeb81e0bfe7fca">
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A registered society
</ins>
is exempt from audit under this Chapter for a financial year if it appears to the
<ins class="substitution first last" ukl:ChangeId="key-7b7c0b5971bf176796ad3f8bb7b4768d-1531586966077" ukl:CommentaryRef="key-7b7c0b5971bf176796ad3f8bb7b4768d">
<noteRef uk:name="commentary" href="#key-7b7c0b5971bf176796ad3f8bb7b4768d" class="commentary"/>
Auditor General for Wales
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that
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<ins class="substitution" ukl:ChangeId="key-8c1d43fc97f82698e31c06a756288b48-1519144013120" ukl:CommentaryRef="key-8c1d43fc97f82698e31c06a756288b48">(a)</ins>
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<p>
<ins class="substitution" ukl:ChangeId="key-8c1d43fc97f82698e31c06a756288b48-1519144013120" ukl:CommentaryRef="key-8c1d43fc97f82698e31c06a756288b48">the society is a small society (within the meaning of Part 7 of the Co-operative and Community Benefit Societies Act 2014) for that year, or</ins>
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<level class="para1" eId="section-40-4-b">
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<ins class="substitution" ukl:ChangeId="key-8c1d43fc97f82698e31c06a756288b48-1519144013120" ukl:CommentaryRef="key-8c1d43fc97f82698e31c06a756288b48">(b)</ins>
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<ins class="substitution last" ukl:ChangeId="key-8c1d43fc97f82698e31c06a756288b48-1519144013120" ukl:CommentaryRef="key-8c1d43fc97f82698e31c06a756288b48">section 83 of that Act (duty to appoint auditors) does not apply to the society for that year because of a resolution under section 84 of that Act (power to disapply auditing requirements).</ins>
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<num>(5)</num>
<content>
<p>
Subsection (1) does not apply if the entity requests the
<ins class="substitution first last" ukl:ChangeId="key-dd00aced535a91f3a112db074ea94d88-1531587001077" ukl:CommentaryRef="key-dd00aced535a91f3a112db074ea94d88">
<noteRef uk:name="commentary" href="#key-dd00aced535a91f3a112db074ea94d88" class="commentary"/>
Auditor General for Wales
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to make the appointment.
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