§ PRIVATE AUDIT
§
Amendments made: No. 364, in page 103, line 1, leave out from "a" to end of line 7 and insert:
body are required to be audited in accordance with this Part of this Act and a person, other that the district auditor, is appointed to carry out the audit, his appointment shall be of no effect for the purposes of this Part of this Act unless particulars of the appointment are sent to the Secretary of State and the appointment is approved by him under this section; and in this Part of this Act "approved auditor" means an auditor who is qualified under subsection (2) below and whose appointment is so approved by the Secretary of State".
§
No. 999, in page 103, line 8, leave out from "qualified" to second "of" in line 9, and insert:
for the purposes of subsection (1) above if, and only if, he is a member, or a firm all the persons wherein are members, of one or more".
§ No. 366, in page 103, line 14, leave out "and Corporate".
§ No. 367, in page 103, line 20, leave out from beginning to end of line 37 and insert:
§ (3) The Secretary of State shall not withhold his approval of the appointment of any person as auditor of any accounts under this Part of this Act unless he is not satisfied—
- (a) that the person concerned has the experience, staff and facilities necessary for carrying out an efficient audit of those accounts, or
- (b) that the terms of his appointment are appropriate to the appointment of an auditor to audit those accounts.
§ (4) Where particulars of an appointment have been sent to the Secretary of State under subsection (1) above, he shall, after considering the matters referred to in paragraph (a) and (b) of subsection (3) above, give notice in writing to the body which made the appointment stating whether or not he approves the appointment; and in any case where the Secretary of State notifies a body that he does not approve an appointment made by them, the body shall proceed to make a new appointment or may, instead, resolve that the accounts concerned shall be audited by a district auditor and, within the period of six weeks beginning with the receipt by them of the notification, or such longer period as the Secretary of State may allow, either particulars of the new appointment shall be sent to the Secretary of State under subsection (1) above or, as the case may require, a copy of the resolution providing for the audit of the accounts by the district auditor shall be sent to the Secretary of State.
§ (5) Subject to the following provisions of this section, the appointment of an approved auditor for any accounts shall continue to be effective for succeeding financial years unless a resolution determining that the accounts shall no longer be audited by him is passed and approved under section 153 above; and in any such case his appointment shall cease except with respect to the accounts of the financial year in which the resolution is passed and any preceding financial year in respect of which his appointment was effective.
§ (6) If at any time after the appointment of an auditor has been approved by the Secretary of State under this section the Secretary of State ceases to be satisfied with respect to any of the matters specified in paragraphs (a) and (b) of subsection (3) above, the Secretary of State may,—
- (a) after giving not less than one month's notice in writing to the approved auditor and to the body who appointed him informing them that the Secretary of State is considering the revocation of his approval, and
- (b) after considering any representations made to him by the auditor or that body,
§ (7) For the purpose of assisting the Secretary of State in considering whether he should approve a person's appointment as auditor under subsection (3) above or whether he should exercise his power under subsection (6) above to withdraw his approval of an auditor's appointment, the body to whose accounts the appointment relates shall, if requested to do so by him, make available for inspection on behalf of the Secretary of State the accounts concerned and such other documents relating to them as might reason ably be required by an auditor for the purpose of auditing the accounts.
§ (8) If any of the following events occurs, namely—
- (a) an approved auditor dies or ceases to be qualified under subsection (2) above, or
- (b) the appointment of an approved auditor is terminated by agreement between himself and the body who appointed him (but otherwise than as mentioned in section 153(9) above), or by virtue of a notification by the Secretary of State of the withdrawal of his approval under subsection (6) above,
§ (9) Without prejudice to subsection (5) above the appointment of an approved auditor under subsection (8) above or a resolution under that subsection providing for the district auditor to audit any accounts shall have effect with respect to the accounts for the financial year in which the appointment is made or, as the case may be, the resolution is passed, and for any preceding financial year in respect of which the approved auditor referred to in paragraph (a) or paragraph (b) of subsection (8) above did not complete the audit of the accounts concerned.—[Mr. Speed.]