§ Andrew RosindellTo ask the Chancellor of the Exchequer, if he will make a statement on his plans to implement Commission Recommendation 2002/590/EC on Statutory Auditors' Independence. [78127]
§ Miss Melanie JohnsonI have been asked to reply
Recommendation 2002/590/EC was adopted by the European Commission on 16 May 2002.
The UK requirements on the independence of statutory company auditors and in the Companies Act 1989 to supervise statutory company auditors and in auditing standards set by the Auditing Practices Board. These bodies are preparing the changes needed to ensure that their requirements are in line with the Recommendation. No changes are needed to auditing standards to bring our requirements into line with the Recommendation.
The Recommendation also suggests the disclosure of fees paid by major companies to their auditors in respect of audit services and non-audit services, broken down into major categories. The UK already requires large companies to disclose in their accounts the fees paid to their auditors in respect of audit and non-audit services. We will consult on changes to the existing regulations to require a breakdown of the non-audit services provided by the auditors.