(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.
(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
(b)has been, is being or may be investigated pursuant to arrangements—
(i)under paragraph 15 of Schedule 10 (investigation of complaints against auditors and supervisory bodies), or
(ii)of a kind mentioned in paragraph 24 of that Schedule (independent investigation for disciplinary purposes of public interest cases).
(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.
(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
(b)has been, is being or may be investigated pursuant to arrangements—
(i)under paragraph 15 of Schedule 10 (investigation of complaints against auditors and supervisory bodies), or
(ii)of a kind mentioned in paragraph 24 of that Schedule (independent investigation for disciplinary purposes of public interest cases).
(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.