Part 7Accounts, audit and annual returns

Auditors

92Persons ineligible for appointment as auditors etc

1

This section applies to an appointment by a registered society of a person—

a

as auditor of the society,

b

for the purposes of making a report of a kind mentioned in row 5 or 6 of the table in section 82 (report on interim revenue account or balance sheet), or

c

under section 85 (duty to obtain report in certain cases where section 83 disapplied).

2

None of the following may be appointed—

a

an officer or employee of the society or any connected registered society;

b

an employee, employer or partner of a person within paragraph (a);

c

a person prohibited by section 1214 of the Companies Act 2006 (independence requirement) from acting as statutory auditor of a company that is a subsidiary of the society.

3

For this purpose, a society is “connected with” another society if—

a

one of them is a subsidiary of the other, or

b

they are both subsidiaries of another registered society.

4

An appointment made in contravention of this section is ineffective for the purposes of this Part.

5

For the purposes of subsection (2), a society's auditor is not to be regarded as an employee of the society (and the auditor is not an “officer” - see section 149).