Commentary on Sections Audit by Accountant
91.Section 43 requires the Accountant to audit any accounts received from a judicial factor under a provision of the Act in accordance with the procedure set out in this section. Subsection (2) gives the Accountant the power to examine further information, and to send the accounts to an external accountant for auditing if the Accountant considers that it is necessary, or would be beneficial, to do so. If the Accountant does send the accounts to an external auditor, subsection (3) places the Accountant under a duty to supervise that external audit, and provides that the Accountant is still the person who is ultimately responsible for the accuracy of the audit. Under subsection (4), the Accountant is required to send a copy of the report on the audit to the judicial factor whose accounts have been audited. Subsection (5) requires the Accountant, or external auditor, to give the judicial factor an opportunity to explain anything in the accounts which requires explanation, and to explain any correction made to the accounts in the course of the audit, to the judicial factor. Subsection (6) requires the costs of any external audit to be paid from the factory estate.
92.Section 44 sets out the process which will apply when any objection or appeal is made by the judicial factor in relation to an audit carried out in accordance with section 43. The effect of subsection (1) is that, other than by the process set out in this section, the results of the audit are not open to challenge. Subsection (2) gives the judicial factor 21 days from the day on which they receive the report on the audit to send a written objection to the Accountant. Subsection (3) requires the Accountant to consider any objection received, after which the Accountant can either amend the results of the audit based on the objection, or dismiss the objection. In the event that the Accountant dismisses the objection, subsection (4) allows the judicial factor to require the Accountant to refer the objection to the court. Subsection (5) makes clear that there is no right of appeal in respect of a decision made by the court following such referral.