Question to the Department for Business and Trade:

To ask His Majesty's Government whether they or the Financial Reporting Council has issued any guidance in relation to the duties of auditors under section 498(1)(a) of the Companies Act 2006.

Sections 498(1) and 498(2) of the Companies Act 2006 covering auditors' investigations as to accounting records require an auditor to report by exception if adequate accounting records have not been kept or returns for the audit of records have not been received from branches. International Standard on Auditing (UK) 700, issued by the Financial Reporting Council as the UK's standard setter, sets out an auditor's statutory responsibility to report on adequate accounting records.

Auditors should also consider technical guidance (01/11) issued by the Institute for Chartered Accountants in England and Wales on directors' duties as to accounting records.