§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry how many accountancy firms criticised by the Department of Trade and Industry or sued by the Government since 1979 for negligence have advised on privatisations or authenticated privatisation prospectuses; how many have supplied inspectors for Department of Trade and Industry investigations; and how many have been permitted to make audit policy through their representations on the Auditing Practices Committee or its working parties.
§ Mr. RedwoodEight inspectors have been appointed from four firms of accountants that were previously criticised in inspectors' reports published since 1979, and one of those firms has since been appointed by the Government for privatisation work. I am not aware that any inspector has been appointed from a firm after it was sued by the Government or that such a firm has been appointed by the Government for privatisation work.
The voting members of the Auditing Practices Committee (APC) are nominated on a personal basis by their professional body and appointed by the Consultative Committee of Accountancy Bodies, which has stipulated that they shall not regard themselves as delegates of sectional interests but shall be guided by the need to act in the general interests of the community and of the accountancy profession as a whole. Members of its working parties are appointed by the APC itself.