§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry (1) how, and in consultation with what bodies, he formulates audit policy;
(2) if he will list the governmental, non-governmental bodies, committees or institutes which make the audit policy in the United Kingdom.
§ Mr. RedwoodThe audit of company accounts is carried out under the Companies Act 1985 which is to be amended by the Companies Act 1989 to reflect both European Community obligations and certain domestic considerations. Significant changes to this legislative framework are usually the subject of wide consultation. In addition, audit standards and guidelines are promulgated by the members of the Consultative Committee of Accountancy Bodies on the basis of proposals developed by its auditing practices committee. The professional accountancy bodies also issue technical guidance to their members.
§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry whether, at any time since June 1979, he has communicated concerns about the standards of auditing to any leader of the accountancy profession.
§ Mr. RedwoodAs I explained in the reply I gave on 11 December at column461 to a question by the hon. Member, my Department normally refers specific complaints about auditors' conduct of statutory audit to the relevant professional body. Last year my Department also took up with the accountancy bodies a number of general issues about the conduct of audit which had come to our notice.