(1) Sections 347 and 348 shall not apply to a DAC if it satisfies the following conditions:
(a) it has been formed for charitable purposes, and
(b) it stands exempted from those sections by an order made by the relevant authority (which order the relevant authority is, by virtue of this section, empowered to make),
and the exemption provided by that order may, as the relevant authority considers appropriate, be either for an indefinite or a limited period.
(2) The following provisions have effect in relation to a DAC referred to in subsection (1):
(a) unless the DAC is entitled to and has availed itself of the audit exemption conferred by Chapter 15 or 16 of Part 6, the statutory auditors of the DAC shall prepare a separate report to the directors which -
(i) confirms that they audited the relevant statutory financial statements for the relevant financial year; and
(ii) includes within it the report made to the members of the DAC pursuant to section 391;
and
(b) a copy of the report pr
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