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| General duties of auditors. |
5. - (1) In auditing accounts required to be audited in accordance with this Act, an auditor shall by examination of the accounts and otherwise satisfy himself-
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(a) if they are accounts of a health service body, that they are prepared in accordance with directions under subsection (2), (2B) (NHS trusts) or (2B) (fund-holding practices) of section 98 of the National Health Service Act 1977; |
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(b) in any other case, that they are prepared in accordance with regulations under section 27; |
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(c) that they comply with the requirements of all other statutory provisions applicable to the accounts; |
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(d) that proper practices have been observed in the compilation of the accounts; |
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(e) that the body whose accounts are being audited has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources; and |
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(f) that that body, if required to publish information in pursuance of a direction under section 44 (performance information), has made such arrangements for collecting and recording the information and for publishing it as are required for the performance of its duties under that section. |
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(2) The auditor shall comply with the code of audit practice applicable to the accounts being audited as that code is for the time being in force.
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| Auditors' right to documents and information. |
6. - (1) An auditor has a right of access at all reasonable times to every document relating to a body subject to audit which appears to him necessary for the purposes of his functions under this Act.
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(2) An auditor may-
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(a) require a person holding or accountable for any such document to give him such information and explanation as he thinks necessary for the purposes of his functions under this Act; and |
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(b) if he thinks it necessary, require the person to attend before him in person to give the information or explanation or to produce the document. |
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(3) In the case of a recognised fund-holding practice, subsections (1) and (2) apply to documents relating to any of the accounts and records of the members of the practice whether or not relating to the allotted sum.
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(4) Without prejudice to subsection (2), the auditor may-
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(a) require any officer or member of a body subject to audit to give him such information or explanation as he thinks necessary for the purposes of his functions under this Act; and |
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(b) if he thinks it necessary, require the officer or member to attend before him in person to give the information or explanation. |
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(5) Without prejudice to subsections (1) to (4), every body subject to audit shall provide the auditor with every facility and all information which he may reasonably require for the purposes of his functions under this Act.
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(6) A person who without reasonable excuse fails to comply with any requirement of an auditor under subsection (1), (2) or (4) is guilty of an offence and liable on summary conviction-
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(a) to a fine not exceeding level 3 on the standard scale, and |
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(b) to an additional fine not exceeding £20 for each day on which the offence continues after conviction for that offence. |
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(7) Any expenses incurred by an auditor in connection with proceedings for an offence under subsection (6) alleged to have been committed in relation to the audit of the accounts of any body, so far as not recovered from any other source, are recoverable from that body.
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| Fees for audit. |
7. - (1) The Commission shall prescribe a scale or scales of fees in respect of the audit of accounts which are required to be audited in accordance with this Act.
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(2) Before prescribing any scale of fees under subsection (1) the Commission shall consult-
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(a) if the scale relates to the audit of accounts of a health service body, such organisations connected with the health service as appear to the Commission to be concerned; |
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(b) if the scale relates to the audit of accounts of any other body, such associations of local authorities as appear to the Commission to be concerned; and |
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(c) in any case, such bodies of accountants as appear to the Commission to be appropriate. |
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(3) A body subject to audit shall, subject to subsection (4), pay to the Commission the fee applicable to the audit in accordance with the appropriate scale.
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(4) If it appears to the Commission that the work involved in a particular audit was substantially more or less than that envisaged by the appropriate scale, the Commission may charge a fee which is larger or smaller than that referred to in subsection (3).
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(5) For the purpose of determining the fee payable for an audit, a body whose accounts are being audited or (if it is a parish meeting) its chairman shall-
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(a) complete a statement containing such information as the Commission may require and submit it to the auditor, and |
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(b) provide the Commission with such further information as it may at any time require. |
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(6) The auditor shall send the statement mentioned in subsection (5)(a) to the Commission on the conclusion of the audit with a certificate that the statement is correct to the best of his knowledge and belief.
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(7) The fee payable for an audit shall be the same whether the auditor who carries it out is an officer of the Commission or not.
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(8) If the Secretary of State considers it necessary or desirable to do so, he may by regulations prescribe a scale or scales of fees to have effect, for such period as is specified in the regulations, in place of any scale or scales prescribed by the Commission; and, if he does so, references in subsections (3) and (4) to the appropriate scale are to be read as respects that period as references to the appropriate scale prescribed by the Secretary of State.
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(9) Before making any regulations under subsection (8) the Secretary of State shall consult-
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(b) such associations of local authorities as appear to him to be concerned, and |
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(c) such bodies of accountants as appear to him to be appropriate. |
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Auditors' reports and recommendations |
| Immediate and other reports in public interest. |
8. In auditing accounts required to be audited in accordance with this Act, the auditor shall consider-
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(a) whether, in the public interest, he should make a report on any matter coming to his notice in the course of the audit, in order for it to be considered by the body concerned or brought to the attention of the public, and |
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(b) whether the public interest requires any such matter to be made the subject of an immediate report rather than of a report to be made at the conclusion of the audit. |
| General report. |
9. - (1) When an auditor has concluded his audit of the accounts of any body under this Act he shall, subject to subsection (2), enter on the relevant statement of accounts prepared pursuant to regulations under section 27 (or, where no such statement is required to be prepared, on the accounts)-
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(a) a certificate that he has completed the audit in accordance with this Act, and |
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(b) his opinion on the statement (or, as the case may be, on the accounts). |
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(2) Where an auditor makes a report to the body concerned under section 8 at the conclusion of the audit, he may include the certificate and opinion referred to in subsection (1) in that report instead of making an entry on the statement or accounts.
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