Part 2Local authorities: governance and audit
Chapter 3Audit of entities connected with local authorities
Audit of accounts
43Right of entity to appoint auditor to conduct statutory audit
1
Where a person is appointed under this Chapter in relation to an entity for a financial year, the entity may, under and in accordance with the relevant statutory provision, appoint that person as auditor of the entity for the purposes of that provision for the financial year.
2
An appointment pursuant to subsection (1) is to be—
a
on the standard terms and conditions, or
b
on the standard terms and conditions subject to such modifications as may be agreed between the entity and the person appointed.
3
The F3Auditor General for Wales must notify the entity of its right under subsection (1).
4
Notification under subsection (3) must be before the beginning of the financial year (except in the case of an appointment for the first financial year of the entity or which is made under section 39).
5
Termination by the F4Auditor General for Wales of the appointment under this Chapter does not terminate an appointment made pursuant to subsection (1).
6
In subsection (1) “the relevant statutory provision”—
a
in relation to a company, means Part 16 of the Companies Act 2006 (c. 46);
b
in relation to a limited liability partnership, means that Part of that Act as it applies to limited liability partnerships;
c
in relation to F1a registered society , means—
i
F2section 83 of the Co-operative and Community Benefit Societies Act 2014, or
ii
in the case of F1a registered society to which regulation 3 of the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 (SI 2008/565) applies, that regulation.
7
In subsection (2), “standard terms and conditions” means terms and conditions (including terms and conditions as to payment of fees) published for the purposes of that subsection by the F5Auditor General for Wales from time to time.
8
Before publishing terms and conditions under subsection (7) F6the Auditor General for Wales must consult—
a
such associations of local authorities, and such bodies of accountants, as the F7Auditor General for Wales considers appropriate, and
F8b
the Welsh Ministers.