§ Mr. Austin MitchellTo ask the President of the Board of Trade whether he will propose legislation under which auditors will have a statutory duty to detect and report material fraud.
§ Mr. Neil HamiltonAll auditors should apply the guidance in the auditing guideline issued in February 1990 on the auditor's responsibility in relation to fraud, other irregularities and errors. If an auditor does not apply the guidance in any particular case, he must be prepared to explain why he has failed to do so. The guideline makes it clear that where the auditor is aware of matters of concern and does not have confidence that they will be properly dealt with by management, he should, if he considers that disclosure should be made in the public interest, disclose the matters to the appropriate authorities.