Companies Act 2014 section 392

Report to Registrar and to Director: accounting records

Section 392 sets out the obligations on statutory auditors to report to the Registrar and the Corporate Enforcement Authority where they believe a company has failed to keep adequate accounting records as required by sections 281 to 285 of the Act.

• Auditors who believe a company is breaching or has breached accounting records requirements must promptly notify the company in writing by recorded delivery and, within seven days, notify the Registrar, who forwards the notice to the Authority
• Notification to the Registrar is not required where the directors have already taken steps to rectify the breach, or where the auditors consider the contraventions to be minor or immaterial
• If requested by the Authority, auditors must provide relevant information and access to documents explaining their opinion, and such written information is admissible as evidence in legal proceedings other than criminal proceedings
• Auditors are protected from liability and do not breach any professional or legal duty by complying with these reporting obligations, though nothing in the section overrides legal professional privilege