§ Mrs. Curtis-ThomasTo ask the President of the Board of Trade what plans she has to ensure that accountancy audits assess operational dependence on information systems. [23812]
§ Mr. Ian McCartneyIt is the responsibility of the auditor in forming an opinion on whether a company's financial statements give a true and fair view to consider the entity's ability to continue as a going concern. This involves considering both the current and possible future circumstances of the business and the environment in which it operates.
In the context of potential systems failures caused by the Year 2000 problem, we are encouraging the profession to consider their role, and the Accounting Practices Board, which sets the standards for auditors, is on the point of issuing a bulletin providing preliminary guidance to auditors in respect of their consideration of the Year 2000 issue in the audit of financial statements. The Audit Faculty of the Institute of Chartered Accountants in England and Wales has already published a Technical Release providing guidance to its members, and the Urgent Issues Task Force of the Accounting Standards Board is also in the process of developing proposals in respect of some aspects of the Year 2000 problem.