§ Mr. ClaphamTo ask the Secretary of State for Trade and Industry if she has received the annual reports for 1339W 2001 from the recognised supervisory bodies for company auditors under Part II of the Companies Act 1989; and if she will make a statement. [73550]
§ Miss Melanie JohnsonI have received the annual reports for the year 2001 from the five recognised supervisory bodies for company auditors: a combined report from the institutes of chartered accountants in England and Wales, Scotland and Ireland, and one each from the Association of Certified Chartered Accountants and the Association of Authorised Public Accountants. Copies of the reports have been placed in the Libraries of both Houses.
Schedule 11 of the Companies Act 1989 sets out the requirements which a body must meet to be eligible for recognised supervisory body status. These include requirements to have adequate arrangements for monitoring and enforcing compliance with its rules relating to membership and eligibility (e.g. holding an appropriate qualification, being a fit and proper person, working to technical and ethical standards, maintaining competence), discipline and investigation of complaints. In these reports, the recognised bodies inform the Government about their activities in relation to these arrangements. We shall discuss the reports with the bodies shortly, and will do so in the light of the interim report of the co-ordinating group on audit and accounting issues.
These arrangements now also fall within the oversight remit of the Review Board. It is currently completing a study of the bodies' discipline and complaints arrangements and will start work shortly on a study of their systems for registration and monitoring of auditors.