§ 421Page 203, line 30, leave out 'such persons as are mentioned below' and insert —
- (a) individuals who do not hold an appropriate qualification, and
- (b) persons who are not members of the firm,'.
§ 422 Page 203, line 34, leave out sub-paragraph 3).
§ Lord StrathclydeMy Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 421 and 422. Those amendments change the restrictions on the categories of person who are to be prevented from exercising an undesirable influence over the conduct of company audit work. The effect is that a wider group of persons is to be prevented from exercising that influence.
Potentially any person who is unqualified could exercise undue influence, as could anyone who was not a member of the firm. Accordingly the amendments lay down that those persons are to be prevented from exercising any influence over the way in which the audit is conducted in circumstances in which that influence would be likely to affect the independence or integrity of the audit.
§ Moved, That the House do agree with the Commons in the said amendments. —(Lord Strathclyde.)
§ On Question, Motion agreed to.