Audit Policy (Hansard, 22 March 1990)

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry whether, at any time since June 1979, any Minister from his Department has publicly called upon auditing firms to publish annual reports and accounts.

§ Mr. Redwood
Not so far as I am aware.

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry what is his policy on following through decisions of the joint disciplinary scheme on matters referred by him to the Institute of Chartered Accountants.

§ Mr. Redwood
The outcome of a complaint referred by my Department to any of the professional accountancy bodies, whether or not it is subsequently referred to the joint disciplinary scheme, is noted and such action is taken as is appropriate.

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry whether he will seek to amend the Companies Act to require each set of annual accounts prepared in accordance with the historical cost convention to carry a statement that these accounts do not show realistic values of assets and may therefore be misleading.

§ Mr. Redwood
No. Understanding figures in company accounts will always depend on understanding the conventions by which the accounts were prepared. It is inherent in accounts prepared under the historical cost accounting rules, as required by the Companies Act 1985 (unless the alternative accounting rules are used), that assets are carried at historical cost less depreciation.

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry whether his Department has any plans to legislate to require auditors of all large companies to examine the chairman's report.

§ Mr. Redwood
I refer the hon. Member to the reply I gave to his question on 12 March, at column43.

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry whether his Department has any plans to require company auditors at annual general meetings to give details of the audit teams used on audits of companies.
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§ Mr. Redwood
No.

§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry whether his Department plans to make any recommendations to companies on the accounting treatment of financial futures.

§ Mr. Redwood
No. This issue is being considered by the accounting profession and my Department is watching developments closely.