Power of Department to require second audit
32.—(1) Where a person appointed company auditor was, for any part of the period during which the audit was conducted, ineligible for appointment to that office, the Department may direct the company concerned to retain a person eligible for appointment as auditor of the company—
(a)to audit the relevant accounts again, or
(b)to review the first audit and to report (giving his reasons) whether a second audit is needed;
and the company shall comply with such a direction within 21 days of its being given.
(2) If a second audit is recommended the company shall forthwith take such steps as are necessary to comply with the recommendation.
(3) Where a direction is given under this Article, the Department shall send a copy of the direction to the registrar; and the company shall within 21 days of receiving any report under paragraph (1)(b) send a copy of it to the registrar.
The provisions of the 1986 Order relating to the delivery of documents to the registrar apply for the purposes of this paragraph.
(4) Any statutory or other provisions applying in relation to the first audit shall apply, so far as practicable, in relation to a second audit under this Article.
(5) If a company fails to comply with the requirements of this Article, it is guilty of an offence and liable on summary conviction to a fine not exceeding the statutory maximum; and in the case of continued contravention it is liable on a second or subsequent summary conviction (instead of the fine mentioned above) to a fine not exceeding one-tenth of the statutory maximum in respect of each day on which the contravention is continued.
(6) A direction under this Article is, on the application of the Department, enforceable by injunction.
(7) If a person accepts an appointment, or continues to act, as company auditor at a time when he knows he is ineligible, the company concerned may recover from him any costs incurred by it in complying with the requirements of this Article.