Section 39: Investigation of unsatisfactory accounts by Registrar.

(1) If any account sent or submitted to the Registrar under section 38 or 39 of this Act is in his opinion unsatisfactory in that he is unable to satisfy himself as regards any question which affects or is likely to affect the accuracy of the account, and in particular any question as to any of the matters mentioned in subsection (2) of this section, the Registrar may, in his discretion either-
(a) direct all or any of the books, records or other documents of the registered body concerned to be delivered to him for examination by himself or by an auditor appointed by him; or
(b) direct that the account be audited by an auditor designated by him for the purpose.
(2) The matters referred to in subsection (1) of this section are the following-
(a) the manner in which the account in question has been kept and prepared;
(b) the sufficency or otherwise of existing checks against irregularity or fraud;
(c) the authority for any departure from the rules of the registered body concerned;
(d) the existence or otherwise of authority for all expenditure shown in the account;
(e) the amount of any sums due to the registered body concerned (other than subscriptions and other sums due from members of the body under its rules) and the reasons for any failure to collect any sums (other than as aforesaid) so due;
(f) the existence of any outstanding advances by or deposits with the registered body concerned which are of an unusual character;
(g) the verification of any material assets of the registered body concerned which are shown in the account.
(3) Where the Registrar has given a direction under subsection(1)(b) of this section, the designated auditor shall have power-
(a) to require all or any of the books, records or other documents of the registered body concerned to be produced to him; and
(b) to inspect and, if he thinks fit, take copies of or extracts from any such document so far as it appears to him necessary to do so for the purpose of auditing the account to which the direction relates; and
(c) for the purpose of auditing that account, to enter any premises of the registered body concerned at all reasonable times.
(4) Any person who-
(a) fails to deliver to the Registrar any document which he has been directed under subsection (1)(a) of this section so to deliver; or
(b) fails to produce to a designated auditor any document which he has been required by that auditor under subsection (3)(a) of this section so to produce; or
(c) obstructs, molests or hinders any auditor designated under subsection (1)(b) of this section in the exercise of his power under subsection (3) of this section, shall be guilty of an offence against this Act.
(5) Where any account is examined or audited by an auditor by virtue of a direction under subsection (I)(a) or (b) of this section, the cost of the examination or audit, as certified by the Registrar, shall be paid by the registered body concerned and, if not so paid, may be recovered from that body as if it were a simple contract debt due to the Registrar.