Auditors in UK Law

What the appellants were saying was wholly inconsistent with what was in these minutes and documents. An example is provided by their assertion that they had acted "in good faith and after taking advice from their officers". They had not acted on the advice of their officers in March 1984, and again in April 1985 and on 14th June 1985.

The leading authority in this area is Porter v McGill [2001] UKHL 67, [2002] 2 AC 357. This is the House of Lords' decision arising out of the well known "Homes for Votes" saga in Westminster. Westminster City Council's Auditor certified that certain councillors had caused approximately 31 million pounds loss to the council by their wilful misconduct. The House of Lords held that the Auditor's decision was valid.

There is nothing objectionable in a judge setting out his or her provisional view at an early stage of proceedings, so that the parties have an opportunity to correct any errors in the judge's thinking or to concentrate on matters which appear to be influencing the judge. There is, however, a clear distinction between (a) reaching a final decision prematurely and (b) reaching a provisional view which is disclosed for the assistance of the parties.

I am re-inforced in this conclusion by the fact that we are dealing with an adjudication decision, not an arbitration award or a judicial decision. Adjudication is a rough and ready process carried out at great speed. Vast masses of submissions and evidence have to be assimilated by the adjudicator in a short space of time. The adjudicator will fashion his procedure in whatever way enables him to discharge his onerous duties most swiftly, effectively and fairly.

In particular, it is well-established that when a statute has conferred on any body the power to make decisions affecting individuals, the courts will not only require the procedure prescribed by the statute to be followed, but will readily imply so much and no more to be introduced by way of additional procedural safeguards as will ensure the attainment of fairness.

A body charged with the administration for definite purposes of funds contributed in whole or in part by persons other than the members of that body, owes, in my view, a duty to those latter persons to conduct that administration in a fairly businesslike manner with reasonable care, skill and caution, and with a due and alert regard to the interest of those contributors who are not members of the body.

In the context of decisions reached by a council committee, the notional observer is a person cognisant of the practicalities of local government. He does not take it amiss that councillors have previously expressed views on matters which arise for decision. He does not take it amiss that councillors have previously expressed views on matters which arise for decision.