This section applies to any public authority which has functions in relation to—
the audit of the accounts of other public authorities, or
the examination of the economy, efficiency and effectiveness with which other public authorities use their resources in discharging their functions.
Information held by a public authority to which this section applies is exempt information if its disclosure would, or would be likely to, prejudice the exercise of any of the authority's functions in relation to any of the matters referred to in subsection (1).
The duty to confirm or deny does not arise in relation to a public authority to which this section applies if, or to the extent that, compliance with section 1(1)(a) would, or would be likely to, prejudice the exercise of any of the authority's functions in relation to any of the matters referred to in subsection (1).