HC Deb 12 April 2002 vol 383 cc634-5W
Mr. Cousins

To ask the Secretary of State for Trade and Industry if she will name the members of the group she has set up to review company auditing policy and practices, together with relevant interests or employment. [42615]

Ms Melanie Johnson

My right hon. Friends, the Secretary of State for Trade and Industry and the Chancellor of the Exchequer have invited the Economic Secretary, HM Treasury and myself, to lead a co-ordinating group on accounting and audit issues, which willensure that there is a comprehensive work programme, to be undertaken by individual regulators, and avoiding unnecessary overlap; provide a progress report by the summer, with a final report at a later stage; commission additional work or reviews, if that is judged appropriate; reach a view on the adequacy of the proposals, and, if appropriate, make specific recommendations.

The members of the co-ordinating group are as follows: Melanie Johnson MP, Minister for Competition, Consumers & Markets, DTI; Ruth Kelly MP, Economic Secretary to the Treasury; Sir John Bourn. Comptroller and Auditor General. Chairman, Accountancy Foundation's Review Board; Michael Foot, Managing Director, Deposit Takers and Markets Directorate, Financial Services Authority; Mary Keegan, Chairman, Accounting Standards Board; Professor Ian Percy, formerly Chairman, Accounts Commission for Scotland. Former Deputy Chairman, Auditing Practices Board; Rosemary Radcliffe, formerly a member of the Company Law Review Steering Group and Chief Economist, Pricewaterhouse Coopers. Complaints Commissioner, Financial Services Authority.

The co-ordinating group at its first meeting discussed the work the regulators have in hand to address the key regulatory issues for audit and accounting raised in the wake of the Enron collapse. This focused on audit quality and auditor independence, financial reporting and auditing requirements, and corporate governance, in particular the role of the Audit Committee. The group will ensure that there is a comprehensive and co-ordinated work programme to be taken forward by regulators over the coming months.

Mr. Cousins

To ask the Secretary of State for Trade and Industry whether the group she has set up to review company auditing policy and practices will take evidence from outside Government; which organisations have been asked to give evidence to it; and whether its report will be published. [42616]

Ms Melanie Johnson

The purpose of the Group is to ensure that the accounting and audit issues raised following the collapse in the US of Enron are addressed by individual regulators in the UK In a comprehensive and coordinated way.

At the first meeting of the group, it was agreed to invite comments from outside Government in relation to the group's coordinating role on the issues for audit and accountancy raised by the collapse of Enron. Further details will appear shortly on the DTI website (www.dti.gov.uk/cld). The group will provide a progress report by the summer, with a final report at a later stage. These will be published.