§ Mr. CousinsTo ask the Secretary of State for Trade and Industry if he will launch an independent investigation into the impact of non-auditing services on auditor independence.
§ Mr. RedwoodI see no reason for doing so. Under schedule 11 to the Companies Act 1989, the recognised supervisory bodies must have adequate rules and practices 711W to ensure that company audit work is conducted with integrity and independence. Moreover, the Government propose to make use of the powers in section 121 of the Companies Act 1989 to require disclosure of fees paid to auditing firms and their associates in respect of non-audit work.
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry if he will propose legislation under which each audit report would state the matters for which auditors accept responsibility.
§ Mr. RedwoodNo. The matter on which company auditors are required to report are set out in the Companies Act 1985.
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry if he will propose legislation under which auditors would owe a duty of care to all institutionalised investors.
§ Mr. RedwoodI refer the hon. Member to the reply I gave to the hon. Member for Great Grimsby (Mr. Mitchell) on 26 October,Official Report, column 329.