HC Deb 06 November 1992 vol 213 cc437-8W
Mr. Austin Mitchell

To ask the President of the Board of Trade on what basis he will be reviewing the operations of the recognised supervisory bodies in 1993.

Mr. Neil Hamilton

When the supervisory bodies for auditors were granted recognition last year under the Companies Act 1989, it was agreed with them that it would be appropriate for the bodies to review jointly with my Department in 1993 the operation of their procedures for monitoring compliance by their members with their rules.

Mr. Austin Mitchell

To ask the President of the Board of Trade what examination he made of the disciplinary procedures of the Institute of Chartered Accountants in England and Wales before granting it recognised supervisory body status.

Mr. Neil Hamilton

My Department's examination of the institute's application for recognition as a supervisory body for auditors under part II of, and schedule 11 to, the Companies Act 1989 was such as to enable the Secretary of State to determine whether the statutory requirements were satisfied.

Mr. Austin Mitchell

To ask the President of the Board of Trade if he will make a statement on the relationship between the Auditing Practices Board and the recognised supervisory body regime established under the Companies Act 1989.

Mr. Neil Hamilton

Paragraph 8 of schedule 11 to the Companies Act 1989 requires recognised supervisory bodies to have rules and practices governing both the technical standards which their auditor members must apply in company audit work and the manner in which those standards are to be applied. The recognised supervisory bodies have bound themselves to adopt the standards and guidelines issued by the Auditing Practices Board and they require their auditor members to comply with those standards.

Mr. Austin Mitchell

To ask the President of the Board of Trade what statutory provisions govern the recourse of members of the public to recognised supervisory bodies.

Mr. Neil Hamilton

Paragraph 12 of schedule 11 to the Companies Act 1989 requires the recognised supervisory bodies to have effective arrangements for the investigation of complaints, both against persons who are eligible under their rules to be appointed as company auditors and for the investigation of complaints against the supervisory bodies themselves in respect of matters arising out of their functions as such. The Companies Act 1989 (Register of Auditors and Information about Audit Firms) Regulations 1991 also require the recognised supervisory bodies to maintain and make available to the public a register of individuals and firms eligible for appointment as company auditor and certain information about firms so registered.