The Local Audit (Smaller Authorities) Regulations 2015

Retention of local auditor by non-qualifying authority

19.—(1) This paragraph applies where a specified person has appointed a local auditor to audit the accounts of an authority which the specified person reasonably believed to be an opted in authority for which the specified person was the relevant specified person, but at the time of the appointment of the auditor the authority—

(a) was a full audit authority;

(b) was not a smaller authority; or

(c) did not fall within the class of authorities for which the specified person is the relevant specified person.

(2) This paragraph applies where a specified person has appointed a local auditor to audit the accounts of an opted in authority for which the specified person was, at the time of the appointment, the relevant specified person, but subsequently the authority—

(a) has become a full audit authority;

(b) has ceased to be a smaller authority; or

(c) no longer falls within the class of authorities for which the specified person is the relevant specified person.

(3) Where the specified person has appointed a local auditor to an authority and paragraph (1) or (2) applies, the auditor may remain in office for the relevant financial year subject to agreement between the authority and the auditor.

(4) In paragraph (3) “relevant financial year” means the financial year in which the circumstances first fall within paragraph (1)(a), (b) or (c) or paragraph (2)(a), (b) or (c)