Auditors in UK Law

What the appellants were saying was wholly inconsistent with what was in these minutes and documents. The evidence relied on by the respondent for rejecting the appellants' assertion that they believed that more money would be forthcoming was strong; but it is a matter of human experience that political zealots, as some of the appellants seem to have been, can so delude themselves about reality that lying is unnecessary for them.

My Lords, if the district auditor had reached a decision adverse to the appellants without giving them any opportunity at all of making representations to him, there can be no doubt that his procedure would have been contrary to the rules of natural justice and that, subject to the question whether the defect was capable of being cured on appeal to the Divisional Court, the decision would fall to be quashed.

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.

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. Of course, it is unacceptable if the judge reaches a final decision before he is in possession of all relevant evidence and arguments which the parties wish to put before him.

Towards these latter persons the body stands somewhat in the position of trustees or managers of the property of others.

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.