§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry whether he will introduce legislation enabling members of the public to take legal action against auditors who have been criticised by his inspectors, and to cite his inspectors' report as evidence.
§ Mr. RedwoodWhether a member of the public has a right of action against an auditor depends on whether that person is owed a duty of care by the auditor and has suffered damage as a result of the auditor's negligence, irrespective of whether the auditor's performance has been criticised in an inspectors' report. Section 441 of the Companies Act 1985 provides for an inspectors' report to be admissible in any legal proceedings as evidence of the inspectors' opinion.