Part 2Local authorities: governance and audit

Chapter 3Audit of entities connected with local authorities

Audit of accounts

44Functions of auditor not appointed to conduct statutory audit

1

This section applies to an entity in relation to which a person is appointed under this Chapter for a financial year if—

a

the entity does not appoint that person pursuant to section 43(1), or

b

the entity does so appoint that person but terminates the appointment before the discharge of the person's functions pursuant to the appointment.

2

Where this section applies to an entity which is a company—

a

the person appointed under this Chapter must make a report to the company on the annual accounts of the company for the financial year, and

b

sections 495(2) to (4) and 496 to 501 of the Companies Act 2006 (c. 46) apply as if—

i

that report were a report under section 495(1) of that Act, and

ii

the person appointed under this Chapter were the company's auditor under Part 16 of that Act.

3

Where this section applies to an entity which is a limited liability partnership—

a

the person appointed under this Chapter must make a report to the partnership on the annual accounts of the partnership for the financial year, and

b

sections 495(2) to (4) and 498 to 501 of the Companies Act 2006 apply as if—

i

that report were a report under section 495(1) of that Act, and

ii

the person appointed under this Chapter were the partnership's auditor under Part 16 of that Act.

4

Where this section applies to an entity which is F1a registered society

a

the person appointed under this Chapter must audit the revenue account or accounts and balance sheet of the society for the financial year and make a report to the society on them,

F2b

section 87(3) to (8) of the Co-operative and Community Benefit Societies Act 2014 apply in relation to that report as they apply to a report under section 87(2) of that Act,

c

section 127(2) of that Act applies in relation to any contravention of section 87(6) of that Act (as applied by paragraph (b)), and

d

in a case where the society has caused group accounts for that year to be prepared as specified in F3section 98 of that Act, the person appointed under this Chapter must make a report to the society on the group accounts, stating the matters referred to in F4subsection (7) of that section.

5

The person appointed under this Chapter must send a copy of the report made under this section to—

a

the local authority with which the entity is connected, and

b

the F5Auditor General for Wales.

6

In subsection (3) references to the Companies Act 2006 are to that Act as it applies in relation to limited liability partnerships.