(1) This section applies where -
(a) the directors of a company deliver abbreviated accounts to the registrar, and
(b) the company is not exempt from audit (or the directors have not taken advantage of any such exemption).
(2) The directors must also deliver to the registrar a copy of a special report of the company's auditor stating that in his opinion -
(a) the company is entitled to deliver abbreviated accounts in accordance with the section in question, and
(b) the abbreviated accounts to be delivered are properly prepared in accordance with regulations under that section.
(3) The auditor's report on the company's annual accounts need not be delivered, but -
(a) if that report was qualified, the special report must set out that report in full together with any further material necessary to understand the qualification, and
(b) if that report contained a statement under -
(i) section 498(2)(a) or (b) (accounts, records or returns inadequate or accounts not agreeing with records