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Local Democracy, Economic Development and Construction Act 2009

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Power to appoint auditorE+W

38Power to appoint auditorE+W

(1)Subject to this Chapter, an audit authority may appoint a person to carry out audit functions in accordance with this Chapter in relation to a relevant entity.

(2)An appointment under this section is to be for a financial year of the entity.

(3)An appointment under this section must be made—

(a)before the start of the financial year to which it relates, or

(b)in the case of an appointment for the first financial year of the entity, before whichever is the earlier of—

(i)the end of that financial year, and

(ii)the end of the period of three months beginning with the day on which the audit authority receives notification in relation to the entity under section 37(1)(a) or (2)(a).

(4)The Audit Commission may make an appointment under this section if (and only if) it appears to the Audit Commission that—

(a)the entity will be a qualifying English local authority entity at the start of the financial year for which the appointment is made, or

(b)in the case of an appointment for the first financial year of the entity, the entity is a qualifying English local authority entity when the appointment is made.

(5)The Auditor General for Wales may make an appointment under this section if (and only if) it appears to the Auditor General that—

(a)the entity will be a qualifying Welsh local authority entity at the start of the financial year for which the appointment is made, or

(b)in the case of an appointment for the first financial year of the entity, the entity is a qualifying Welsh local authority entity when the appointment is made.

(6)Before making an appointment under this section in relation to an entity the appointing audit authority must consult the entity.

(7)Where one audit authority (“the first audit authority”) proposes to appoint a person under this section in relation to an entity for a financial year in circumstances where the other audit authority could also make an appointment under this section in relation to that entity for that year—

(a)the first audit authority must consult the other audit authority, and

(b)the first audit authority may not make the appointment for that entity for that year if the other audit authority has already done so.

(8)After making an appointment under this section in relation to an entity the appointing audit authority must notify the local authority with which the entity is connected.

39Power to appoint replacement auditorE+W

(1)Where a person appointed by an audit authority under this Chapter in relation to an entity for a financial year dies, is dismissed or is unable or unwilling to act, the audit authority may (subject to this Chapter) appoint a replacement in relation to that entity for that financial year.

(2)Before making an appointment under this section the audit authority must consult the entity.

(3)After making an appointment under this section the audit authority must notify the local authority with which the entity is connected.

40ExclusionsE+W

(1)An audit authority may not make an appointment under this Chapter in relation to an entity for a financial year if, by virtue of this section, the entity is exempt from audit for that year.

(2)A company is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that, for the purposes of Part 16 of the Companies Act 2006 (c. 46), the company is or will be exempt from audit under that Part for that year.

(3)A limited liability partnership is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that, for the purposes of Part 16 of the Companies Act 2006 (as that Part applies to limited liability partnerships), the partnership is or will be exempt from audit under that Part for that year.

(4)An industrial and provident society is exempt from audit under this Chapter for a financial year if it appears to the appointing audit authority that subsection (1) of section 4 of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) does not or will not apply to the society for that year by virtue of subsection (2) of that section or section 4A(1) of that Act.

(5)Subsection (1) does not apply if the entity requests the audit authority to make the appointment.

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