HC Deb 08 January 1990 vol 164 cc513-4W
Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry what actions are taken by his Department against accountancy firms criticised in his inspector's reports on inquiries under the Companies Act.

Mr. Forth

Such action as may be appropriate in the circumstances which may include disclosure of information with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the exercise by an auditor or an accountant of his professional duties.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry how many times accountancy firms have been criticised for the audits in investigations conducted by his Department under the Companies Act; how many firms these criticisms apply to; and what action is taken by his Department when such criticisms are made.

Mr. Forth

This information could be provided only at disproportionate cost. My Department takes such action as is appropriate when accountancy firms are criticised in investigations. This may include disclosure of information with a view to the institution of, or otherwise for the purpose of, any disciplinary proceedings relating to the exercise by an auditor or an accountant of his professional duties.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry how many inquiries conducted under the Companies Act he has ordered since January 1979; how many have reported; how many of these reports have been published; how many of those not published have been communicated in any way to professional bodies; and how many of(a) the published reports and (b) the unpublished reports have resulted in (i) court action, (ii) any professional discipline on which he has information and (iii) action by his Department.

Mr. Forth

Inspections into the affairs and/or membership of 57 companies, some of which are linked, have begun since January 1979. A final report has been submitted in relation to 35 of those companies. An interim report has been submitted in relation to five other companies. Fourteen reports, including three interim reports, have been published relating to 17 different companies. One unpublished report has been disclosed to a professional body. Criminal proceedings have followed or commenced during investigations in relation to nine companies, in respect of which three reports relating to four companies have been published. Winding-up and disqualification proceedings have been commenced by my right hon. Friend the Secretary of State during an investigation in which an interim report was submitted. That report is unpublished.

Disciplinary proceedings by a professional body have followed investigations in relation to four companies in respect of which two reports relating to three companies have been published.

Other action was taken by my Department in one investigation in respect of which the report was published and resulted in the recovery of £475,000 for creditors and shareholders.