§ Mr. Tony Lloydasked the Secretary of State for the Environment if, pursuant to his powers under schedule 3, paragraph 3(1), to the Local Government (Finance) Act 1982, he will direct the Audit Commission to amend its code of audit practice so as to prohibit firms or individuals appointed as auditors from receiving reimbursements for work carried out in circumstances which avoid the restrictions currently in the code as to the amount of such work which any one authority may commission; and if he will make a statement.
§ Mr. WaldegraveNo. The preparation and review of the code of audit practice is entirely a matter for the commission itself. The commission has made its views on conflict of interest well known. If the hon. Gentleman is aware of any alleged breaches of the present code of practice no doubt he will inform the commission.
§ Mr. Tony Lloydasked the Secretary of State for the Environment if, pursuant to his powers in schedule 3, paragraph 3(2), to the Local Government (Finance) Act 1982, he will seek information from the Audit Commission as to the circumstances in which Price Waterhouse Co. carried out special work on behalf of an authority whose accounts it did not audit, the cost of which was shared by authorities whose accounts it did audit, and as to what action the commission has taken regarding this practice; and if he will make a statement on the substance of the information.
§ Mr. WaldegraveNo. My right hon. Friend the Secretary of State's power, under schedule 3 paragraph 3(2) to the Local Government Finance Act 1982, to require information, relates to the functions of the Audit Commission and not to the circumstances in which a firm of consultants undertakes work on behalf of a local authority or group of authorities.