§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry if he will list the auditing standards and guidelines to which his representative on the Auditing Practices Committee has(a) objected and (b) assented.
§ Mr. RedwoodThe Department's representative does not have a vote. He naturally discusses a wide range of matters, presenting the Department's viewpoint on the normal terms of committee confidence.
§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry whether auditors are under any statutory duty to search for and evaluate evidence relating to the applicability of the going concern concept.
§ Mr. RedwoodThe duties of auditors under the Companies Act are set out in sections 236 and 237 of the Companies Act 1985. It is a basic accounting principle (set out in paragraph 10 of schedule 4 to the Act) that there is a presumption that a reporting company is carrying on business as a going concern. If the accounts are drawn up on that basis but the auditor finds that the audit evidence does not justify that presumption he should report appropriately.