§ Mr. Austin MitchellTo ask the President of the Board of Trade what action he intends to take against the Institute of Chartered Accountants of England and Wales for failure to keep a proper register of individuals eligible to conduct audits; and what inquiries he intends to initiate to investiage the performance of the regulatory bodies in this respect.
§ Mr. Jonathan EvansThe Companies Act 1989 (Register of Auditors and Information about Audit Firms) Regulations 1991 require the recognised supervisory bodies for company auditors, of which the Institute of Chartered Accountants in England and Wales is one, to take reasonable care to keep and maintain a register of the individuals and firms eligible for appointment as company auditor. The regulations are made pursuant to sections 35 and 36 of the Companies Act 1989.
It has been alleged that the ICAEW may have failed to meet these requirements in its handling of one case last year. My Department has sought an explanation from the ICAEW and I will write to the hon. Member once I have considered that response and made any further inquiries which may be appropriate.