(1) The auditor of a company to which section 205E applies shall undertake an annual review of -
(a) the directors' compliance statement under subsections (3) and (4) of that section, and
(b) the directors' statement under subsections (5) and (6) of that section,
to determine whether, in the auditor's opinion, each statement is fair and reasonable having regard to information obtained by the auditor, or by an affiliate of the auditor within the meaning of section 205D, in the course of and by virtue of having carried out audit work, audit-related work or non-audit work for the company.
(2) The auditor shall -
(a) include in the auditor's report appended to the company's annual accounts a report on, and the conclusions of, the review undertaken under subsection (1), and
(b) where any statement reviewed under subsection (1) is not, in the auditor's opinion, fair and reasonable -
(i) make a report to that effect to the directors, and
(ii) include that report in the auditor's report a