491. Duty Of Auditor To Notify Appropriate Audit Authority
(a) in the case of a major audit, an auditor ceases for any reason to hold office, or
(b) in the case of an audit that is not a major audit, an auditor ceases to hold office before the end of his term of office,
(c) the auditor ceasing to hold office must notify the appropriate audit authority and the Registrar.
(2) The notice must–
(a) inform the appropriate audit authority that he has ceased to hold office, and
(b) be accompanied by a copy of the statement deposited by him at the company’s registered office in accordance with section 488 (statement by auditor to be deposited with company).
(3) If the statement so deposited is to the effect that he considers that there are no circumstances in connection with his ceasing to hold office that need to be brought to the attention of members or creditors of the company, the notice must also be accompanied by a statement of the reasons for his ceasing to hold office.
(4) The auditor must comply with this section–
(a) in the case of a major audit, at the same time as he deposits a statement at the company’s registered office in accordance with section 488 (statement by auditor to be deposited with company),
(b) in the case of an audit that is not a major audit, at such time (not being earlier than the time mentioned in subsection (4)(a)) as the appropriate audit authority or the Registrar may require.
(5) In this section, “major audit” means an audit conducted under this Part in respect of-
(a) a listed company; and
(b) any other person in whose financial condition there is a major public interest.
(6) In determining whether an audit is a major audit within subsection 5(b), regard shall be had to any guidance issued by the Registrar.
(7) A person ceasing to hold office as auditor who fails to comply with this section commits a contravention of these Regulations.
(8) If that person is a firm a contravention is committed by–
(a) the firm, and
(b) every officer of the firm who is in default.
(9) A person does not commit the contravention referred to in subsection (7) if he shows that he took all reasonable steps and exercised all due diligence to avoid the commission of the contravention.
(10) A person who commits the contravention referred to in subsection (7) shall be liable to a level 2 fine.