Section 498: Duties of auditor, Companies Act 2006

A company's auditor, in preparing his report, must carry out such investigations as will enable him to form an opinion as to—

whether adequate accounting records have been kept by the company and returns adequate for their audit have been received from branches not visited by him, and

whether the company's individual accounts are in agreement with the accounting records and returns, and

in the case of a quoted company ..., whether the auditable part of the company's directors' remuneration report is in agreement with the accounting records and returns.

If the auditor is of the opinion—

that adequate accounting records have not been kept, or that returns adequate for their audit have not been received from branches not visited by him, or

that the company's individual accounts are not in agreement with the accounting records and returns, or

in the case of a quoted company ..., that the auditable part of its directors' remuneration report is not in agreement with the accounting records and returns,

the auditor shall state that fact in his report.

If the auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report.

If—

the requirements of regulations under section 412 (disclosure of directors' benefits: remuneration, pensions and compensation for loss of office) are not complied with in the annual accounts, or

in the case of a quoted company, the requirements of regulations under section 421 as to information forming the auditable part of the directors' remuneration report are not complied with in that report,

the auditor must include in his report, so far as he is reasonably able to do so, a statement giving the required particulars.

If the directors of the company—

have prepared accounts in accordance with the small companies regime, or

have taken advantage of small companies exemption from the requirement to prepare a strategic report or in preparing the directors' report,

and in the auditor's opinion they were not entitled to do so, the auditor shall state that fact in his report.

Where more than one person is appointed as auditor, the report must include a statement as to whether all the persons appointed agree on the statements given under subsections (2) to (5) and, if they cannot agree on those statements, the report must include the opinions of each person appointed and give reasons for the disagreement.

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Section 498: Duties of auditor

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