Auditor’s Resignation Letter

IN LIGHT OF THE ECONOMIC CRIME & CORPORATE TRANSPARENCY ACT 2023, THIS TEMPLATE IS CURRENTLY UNDER REVIEW. 

The Companies Act 2006 does not prescribe the form of notice an auditor must give to resign office. In practice, it is usually a letter addressed to the company.

This template is a resignation letter that an auditor may use to notify the company of its resignation as auditor.

Statutory framework and assumptions used in this template

Auditor resignation (and the process that must be followed) is governed by sections 516 to 525 of the Companies Act 2006. The requirements depend on factors including whether the company is a public interest entity, whether the resignation is voluntary, and whether the auditor is ceasing to hold office for an exempt reason.

This template is drafted on the basis that:

• the company is a non-public interest company;
• the resignation is voluntary; and
• the auditor is resigning for an exempt reason.

Further detail on these distinctions (and any related requirements and filings) is set out in our guidance note, Accounts & Audit.

How resignation is effected and notifications

Section 516 of the Companies Act 2006 provides that an auditor may resign by depositing written notice at the company’s registered address.

The company is not required to send a copy of the resignation notice to Companies House. A company is only required to notify its relevant audit authority if the resignation is not for exempt reasons.

Auditor’s Resignation Letter is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.