Companies exempt from audit requirements: accountant’s report

16A

1

This paragraph applies to registered social landlords which are companies registered under the Companies Act 1985 (“RSL companies”).

2

In section 249A of the Companies Act 1985 (exemptions from audit)—

a

subsection (2) shall apply in relation to an RSL company which meets the total exemption conditions in respect of a financial year (whether it is a charity or not), and

b

that subsection shall apply in relation to such a company in the same way as it applies in relation to an RSL company which is a charity and meets the report conditions in relation to a financial year; and

c

subsection (1) accordingly does not have effect in relation to an RSL company.

3

In section 249C of that Act (report required for the purposes of section 249A(2)), subsection (3) shall apply in relation to an RSL company within sub-paragraph (2)(a) above as if the reference to satisfying the requirements of section 249A(4) were a reference to meeting the total exemption conditions.

4

The Relevant Authority may, in respect of any relevant financial year of an RSL company, give a direction to the company requiring it—

a

to appoint a qualified auditor to audit its accounts and balance sheet for that year, and

b

to furnish to the Relevant Authority a copy of the auditor’s report by such date as is specified in the direction.

5

For the purposes of sub-paragraph (4), a financial year of an RSL company is a “relevant financial year”if—

a

it precedes that in which the direction is given, and

b

the company met either the total exemption conditions or the report conditions in respect of that year, and

c

its accounts and balance sheet for that year were not audited in accordance with Part 7 of the Companies Act 1985.

6

In this paragraph—

a

“financial year” has the meaning given by section 223 of the Companies Act 1985;

b

“qualified auditor” means a person who is eligible for appointment as auditor of the company under Part 2 of the Companies Act 1989;

c

any reference to a company meeting the report conditions is to be read in accordance with section 249A(4) of the Companies Act 1985; and

d

any reference to a company meeting the total exemption conditions is to be read in accordance with section 249A(3) or section 249A(3) and (3A) of that Act, depending on whether it is a charity.