| A18. | Where the auditor believes that management, or those charged with governance, have failed to take the necessary steps to prevent reliance on the auditor's report on financial statements previously issued by the entity despite the auditor's prior notification that the auditor will take action to seek to prevent such reliance, the auditor's course of action depends upon the auditor's legal rights and obligations. Consequently, the auditor may consider it appropriate to seek legal advice. |
| A18-1. | Where the financial statements of companies are issued but have not yet been laid before the members or equivalent, or if those charged with governance do not intend to make an appropriate statement at the annual general meeting, then the auditor may consider making an appropriate statement at the annual general meeting. The auditor does not have a statutory right to communicate directly in writing with the members although, if the auditor resigns or is removed or is not reappointed, the auditor has, for example, various duties under company law9a. |
| 9a The auditor of a limited company in Great Britain who ceases to hold office as auditor is required to comply with the requirements of section 519 of the Companies Act 2006 regarding the statement to be made by the auditor in relation to ceasing to hold office. Equivalent requirements for the Republic of Ireland, are contained in section 185 of the Companies Act 1990. |
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