Local Democracy, Economic Development and Construction Act 2009

44 Functions 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 an industrial and provident 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,

(b) section 9(2) to (7) of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) applies in relation to that report as in relation to a report under section 9(1) of that Act,

(c) section 18 of that Act applies in relation to any contravention of section 9(5) 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 section 13 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 subsection (5) 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 appointing audit authority.

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