Schedule 12: Arrangements in which registered third country auditors are required to participate Chapter 6: Supplementary and General Sections 1248 and 1249: Power to require second company audit
1588.These sections restate section 29 of the 1989 Act empowering the Secretary of State to require a second audit of a company in circumstances where the person appointed as statutory auditor was not eligible for appointment or was not independent of the company audited. Subsection (2) permits the Secretary of State to direct either that a second audit is performed or that a review of the first audit is carried out (which will inform whether a second audit is required). Subsections (5) to (8) set out the criminal sanctions on the company should it fail to comply with that order. Section 1249 allows the audited person to recover the costs of the second audit from the first auditor, if the first auditor knew when he acted that he was not eligible or not independent.