Paragraph 3 I1

Section 7 (appointment of local auditor) is amended as follows.

In subsection (1), for “relevant authority” substitute “health service body”.

In subsection (2)—

In subsection (3), for “relevant authority” substitute “health service body”.

For subsection (5) substitute—

“(5)

A relevant health service body may only appoint as its local auditor—

(a)

the Local Audit Office, or

(b)

a registered local audit provider.

(5A)

The body must not appoint a person whom it has reason to think will be unable to act because of section 32B (independence requirement).”

In subsection (6), in the words before paragraph (a), for “relevant authority” substitute “health service body”.

In subsection (7), for “under subsection (6)(b) or (c)” substitute “in accordance with subsection (6)”.

For subsection (8) substitute—

“(8)

The Secretary of State may by regulations make provision about the appointment of a local auditor to audit the accounts of a health service body which is specified, or of a description specified, in the regulations.

(9)

Regulations under subsection (8) may, in particular—

(a)

make further provision about the operation of this Act or any provision made under it in relation to a health service body to which the regulations apply;

(b)

provide for any provision of or made under this Act not to apply, or to apply with modifications, in relation to a health service body to which the regulations apply.”