Companies Act 2014 section 1438

Audit by Comptroller and Auditor General of companies not trading for gain

Section 1438 deals with the role of the Comptroller and Auditor General in auditing companies that do not trade for the profit of their members.

• The section applies only to companies that are not trading for the acquisition of gain by their members
• Where the Comptroller and Auditor General is appointed as auditor of such a company under any enactment, the terms "statutory auditor" and "audit of the statutory financial statements" in the Companies Act 2014 are deemed to include the Comptroller and Auditor General and audits carried out by that office
• Certain regulatory provisions that normally govern statutory auditors — specifically Chapters 18, 20 and 21 of Part 6, and Part 27 of the Act — do not apply to the Comptroller and Auditor General or to audits conducted by that office in these circumstances
• This ensures the Comptroller and Auditor General can carry out statutory audits of not-for-profit companies without being subject to the same regulatory framework that applies to private-sector auditors