Judicial Factors (Scotland) Act 2025

Audit by Accountant

43 Audit by Accountant

(1) Where the Accountant receives accounts prepared by a judicial factor by virtue of this Act the Accountant must audit the accounts in accordance with this section.

(2) In auditing accounts prepared by a judicial factor the Accountant may—

(a) examine such further information in relation to the accounts as the Accountant considers appropriate,

(b) if the Accountant considers it necessary or expedient to do, remit the accounts for auditing to such duly qualified persons as the Accountant may select.

(3) Where the Accountant remits the accounts for auditing, the Accountant—

(a) must supervise the audit,

(b) retains responsibility for the accuracy of the audit.

(4) When an audit is complete, the Accountant must set out the results in a report and send a copy of the report to the judicial factor.

(5) If in the course of the audit the Accountant or the person to whom the accounts have been remitted (as the case may be)—

(a) comes to the view that some aspect of the accounts requires to be explained, then the judicial factor must be given an opportunity to provide the explanation before the audit is completed, or

(b) makes any correction to the accounts, then the Accountant (or the person), on being required to do so by the judicial factor, must explain the correction and the reason for making it.

(6) Any costs incurred in remitting the accounts to a person under subsection (2)(b) are to be met from the factory estate.

44 Audit by Accountant: objection and appeal

(1) Subject to subsections (2) to (5)—

(a) an audit completed in accordance with section 43,

(b) the accounts to which the audit relates, and

(c) the report on the results of the audit,

are conclusive.

(2) The judicial factor to whom the report relates may lodge a written objection to the report with the Accountant within the period of 21 days beginning on the day on which the judicial factor receives the report.

(3) The Accountant must consider any objection lodged under subsection (2) and, following that consideration, may—

(a) amend the results and report of the audit in order to take account of matters raised in the objection, or

(b) dismiss the objection.

(4) Where the Accountant dismisses an objection under subsection (3)(b) the judicial factor may require the Accountant to refer the objection for determination by the court which appointed the judicial factor.

(5) The determination of the court in relation to an objection referred under subsection (4) is final and is conclusive against both the Accountant and the judicial factor.