C11C9C13C8C15C14C12C7Part 16Audit
Pt. 16 excluded (8.4.2020) by Parliamentary Buildings (Restoration and Renewal) Act 2019 (c. 27), s. 14(2)(3), Sch. 2 para. 9(9)
Pt. 16 excluded (S.) (26.11.2020) by The Companies Act 2006 (Scottish public sector companies to be audited by the Auditor General for Scotland) Order 2020 (S.S.I. 2020/402), arts. 1(1), 3
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))
Pt. 16 excluded (S.) (10.3.2021) by The Companies Act 2006 (Scottish public sector companies to be audited by the Auditor General for Scotland) Order 2021 (S.S.I. 2021/129), arts. 1(1), 3
Pt. 16 excluded (S.) (15.6.2022) by The Companies Act 2006 (Scottish public sector companies to be audited by the Auditor General for Scotland) Order 2022 (S.S.I. 2022/207), arts. 1(1), 3
Pt. 16 excluded (S.) (30.10.2022) by The Companies Act 2006 (Scottish public sector companies to be audited by the Auditor General for Scotland) (No. 2) Order 2022 (S.S.I. 2022/308), arts. 1(1), 3
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
C8Chapter 3Functions of auditor
Offences in connection with auditor's report
C4C10507C1Offences in connection with auditor's report
1
A person to whom this section applies commits an offence if he knowingly or recklessly causes a report under section 495 (auditor's report on company's annual accounts) to include any matter that is misleading, false or deceptive in a material particular.
2
A person to whom this section applies commits an offence if he knowingly or recklessly causes such a report to omit a statement required by—
a
section 498(2)(b) (statement that company's accounts do not agree with accounting records and returns),
b
section 498(3) (statement that necessary information and explanations not obtained), or
c
section 498(5) (statement that directors wrongly took advantage of exemption from obligation to prepare group accounts).
3
This section applies to—
a
where the auditor is an individual, that individual and any employee or agent of his who is eligible for appointment as auditor of the company;
b
where the auditor is a firm, any director, member, employee or agent of the firm who is eligible for appointment as auditor of the company.
4
A person guilty of an offence under this section is liable—
a
on conviction on indictment, to a fine;
b
on summary conviction, to a fine not exceeding the statutory maximum.
C5C10508C2Guidance for regulatory and prosecuting authorities: England, Wales and Northern Ireland
1
The Secretary of State may issue guidance for the purpose of helping relevant regulatory and prosecuting authorities to determine how they should carry out their functions in cases where behaviour occurs that—
a
appears to involve the commission of an offence under section 507 (offences in connection with auditor's report), and
F1b
has been, is being or may be investigated—
i
pursuant to arrangements under paragraph 15 of Schedule 10 (investigation of complaints against auditors and supervisory bodies), or
ii
by the competent authority under the Statutory Auditors and Third Country Auditors Regulations 2016.
2
The Secretary of State must obtain the consent of the Attorney General before issuing any such guidance.
3
In this section “relevant regulatory and prosecuting authorities” means—
a
supervisory bodies within the meaning of Part 42 of this Act,
b
bodies to which the Secretary of State may make grants under section 16(1) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27) (bodies concerned with accounting standards etc),
c
the Director of the Serious Fraud Office,
d
the Director of Public Prosecutions or the Director of Public Prosecutions for Northern Ireland, and
e
the Secretary of State.
4
This section does not apply to Scotland.
C6C10509C3Guidance for regulatory authorities: Scotland
1
The Lord Advocate may issue guidance for the purpose of helping relevant regulatory authorities to determine how they should carry out their functions in cases where behaviour occurs that—
a
appears to involve the commission of an offence under section 507 (offences in connection with auditor's report), and
F2b
has been, is being or may be investigated—
i
pursuant to arrangements under paragraph 15 of Schedule 10 (investigation of complaints against auditors and supervisory bodies), or
ii
by the competent authority under the Statutory Auditors and Third Country Auditors Regulations 2016.
2
The Lord Advocate must consult the Secretary of State before issuing any such guidance.
3
In this section “relevant regulatory authorities” means—
a
supervisory bodies within the meaning of Part 42 of this Act,
b
bodies to which the Secretary of State may make grants under section 16(1) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27) (bodies concerned with accounting standards etc), and
c
the Secretary of State.
4
This section applies only to Scotland.
Pt. 16 applied (with modifications) (8.12.2017) by The Risk Transformation Regulations 2017 (S.I. 2017/1212), regs. 1(2), 162, 163 (with reg. 189)