Part 2Local authorities: governance and audit

Chapter 3Audit of entities connected with local authorities

Audit of accounts

44Functions of auditor not appointed to conduct statutory audit

(1)

This section applies to an entity in relation to which a person is appointed under this Chapter for a financial year if—

(a)

the entity does not appoint that person pursuant to section 43(1), or

(b)

the entity does so appoint that person but terminates the appointment before the discharge of the person's functions pursuant to the appointment.

(2)

Where this section applies to an entity which is a company—

(a)

the person appointed under this Chapter must make a report to the company on the annual accounts of the company for the financial year, and

(b)

sections 495(2) to (4) and 496 to 501 of the Companies Act 2006 (c. 46) apply as if—

(i)

that report were a report under section 495(1) of that Act, and

(ii)

the person appointed under this Chapter were the company's auditor under Part 16 of that Act.

(3)

Where this section applies to an entity which is a limited liability partnership—

(a)

the person appointed under this Chapter must make a report to the partnership on the annual accounts of the partnership for the financial year, and

(b)

sections 495(2) to (4) and 498 to 501 of the Companies Act 2006 apply as if—

(i)

that report were a report under section 495(1) of that Act, and

(ii)

the person appointed under this Chapter were the partnership's auditor under Part 16 of that Act.

(4)

Where this section applies to an entity which is F1a registered society —

(a)

the person appointed under this Chapter must audit the revenue account or accounts and balance sheet of the society for the financial year and make a report to the society on them,

F2(b)

section 87(3) to (8) of the Co-operative and Community Benefit Societies Act 2014 apply in relation to that report as they apply to a report under section 87(2) of that Act,

(c)

section 127(2) of that Act applies in relation to any contravention of section 87(6) of that Act (as applied by paragraph (b)), and

(d)

in a case where the society has caused group accounts for that year to be prepared as specified in F3section 98 of that Act, the person appointed under this Chapter must make a report to the society on the group accounts, stating the matters referred to in F4subsection (7) of that section.

(5)

The person appointed under this Chapter must send a copy of the report made under this section to—

(a)

the local authority with which the entity is connected, and

(b)

the F5Auditor General for Wales.

(6)

In subsection (3) references to the Companies Act 2006 are to that Act as it applies in relation to limited liability partnerships.