§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry (1) if he will bring forward legislation to protect small investors and the creditors of companies who relied on the reports of negligent auditors on the same terms as loan creditors who rely on their own commissioned accountant's reports;
(2) if he will introduce legislation to make auditors liable in negligence to third parties who rely on their published accounts to make investment decisions.
§ Mr. RedwoodWe have no plans to do so.
§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry if he will list the number of instances when his Department has noted disclosure of an auditor's shareholding in a company.
16W
§ Mr. RedwoodThis information is not collected. Ethical guidance issued by the professional accountancy bodies advises auditors generally not to hold shares in audit clients except in given circumstances.
§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry in how many instances his Department has noted loans made by auditors to their clients.
§ Mr. RedwoodThis information is not collected. Ethical guidance issued by the professional accountancy bodies advises accountancy practices not to make loans to clients.
§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry what information he has concerning the rate at which audit fees for large companies have been rising.
§ Mr. RedwoodInformation about audit fees is not collected.