HC Deb 08 July 1991 vol 194 c254W
Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry, pursuant to his answer of 23 May,Official Report, column 627, if he has any plans to propose legislation under which the bodies acting as recognised supervisory bodies will be required to publish the number of complaints which they receive against their members.

Mr. Redwood

I have no plans for such legislation. Under the Companies Act 1989, a recognised supervisory body must have effective arrangements for the investigation of companies against persons who are eligible under the body's rules to be appointed company auditor.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry if he will propose legislation under which auditing firms could be required to explain audit failures to representatives of shareholders and creditors.

Mr. Redwood

No. Shareholders can already seek explanations of audit work at AGMs, and if they are unhappy can change the auditor. A company already has means of legal redress against negligent auditors.