Part 16

Audit
Chapter 4

Removal, resignation, etc of auditors

Statement by auditor on ceasing to hold office

Duty of auditor to notify appropriate audit authority
522
1
Where—
a
in the case of a major audit, an auditor ceases for any reason to hold office, or
b
in the case of an audit that is not a major audit, an auditor ceases to hold office before the end of his term of office,
the auditor ceasing to hold office must notify the appropriate audit authority.
2
The notice must—
a
inform the appropriate audit authority that he has ceased to hold office, and
b
be accompanied by a copy of the statement deposited by him at the company’s registered office in accordance with section 519.
3
If the statement so deposited is to the effect that he considers that there are no circumstances in connection with his ceasing to hold office that need to be brought to the attention of members or creditors of the company, the notice must also be accompanied by a statement of the reasons for his ceasing to hold office.
4
The auditor must comply with this section—
a
in the case of a major audit, at the same time as he deposits a statement at the company’s registered office in accordance with section 519;
b
in the case of an audit that is not a major audit, at such time (not being earlier than the time mentioned in paragraph (a)) as the appropriate audit authority may require.
5
A person ceasing to hold office as auditor who fails to comply with this section commits an offence.
6
If that person is a firm an offence is committed by—
a
the firm, and
b
every officer of the firm who is in default.
7
In proceedings for an offence under this section it is a defence for the person charged to show that he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.
8
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.