HC Deb 26 February 1990 vol 168 cc15-6W
Mr. Austin Mitchell

To 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. Redwood

We have no plans to do so.

Mr. Austin Mitchell

To 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.

Mr. Redwood

This 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 Mitchell

To 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. Redwood

This information is not collected. Ethical guidance issued by the professional accountancy bodies advises accountancy practices not to make loans to clients.

Mr. Austin Mitchell

To 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. Redwood

Information about audit fees is not collected.

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