§ The Secretary of State for Trade and Industry (Ms Patricia Hewitt)I have received the annual reports for the year 2003 from the five recognised supervisory bodies for company auditors: a combined report from the Institutes of Chartered Accountants in England and Wales, Scotland and Ireland, and one each from the Association of Certified Chartered Accountants and the Association of Authorised Public Accountants. Copies of the reports have been placed in the Libraries of both Houses.
Schedule 11 of the Companies Act 1989 sets out the requirements which a body must meet to be eligible for recognised supervisory body status. These include requirements to have adequate arrangements for monitoring and enforcing compliance with its rules relating to membership and eligibility (e.g. holding an appropriate qualification, being a fit and proper person, working to technical and ethical standards, maintaining competence), discipline and investigation of complaints. In these reports, the recognised bodies inform the Government about their activities in relation to these arrangements.
In January 2003, I announced a number of changes to the regulatory regime of the accountancy and audit professions, including the establishment of a new independent inspection unit, located within the Financial Reporting Council, and a professional oversight board for accountancy (POBA), to take over, from this Department, my functions under Part II of the Companies Act 1989 in respect of the recognised supervisory bodies. I am pleased to report that these bodies are now established and in operation. The delegation of these powers is dependent on provisions in the Companies (Audit, Investigation and Community 17WS Enterprise) Bill currently before the House and so for the time being my Department continues to have responsibility for oversight of the recognised supervisory bodies.