The following are the terms of reference of the review group on auditing: (a) whether self-regulation in the auditing profession is working effectively and consistently; (b) whether any new or revised structures and arrangements are necessary to improve public confidence and, if so, what form should they take; (c) the role of the external auditor in providing other services to the same institution; (d) the impact of other functions such as tax advice and consultancy on the external audit process; (e) the determination of fees, bearing in mind shareholder interests; (f) the relationships between an external auditor and the management that appoints and remunerates him; (g) the statutory provisions on auditing in the Companies Acts and related codes; (h) the role of the external auditor in ensuring compliance with statutory provisions; (i) the possible role of the Central Bank in regard to management letters issued by external auditors to financial institutions; (j) the possible strengthening of audit standards relating to financial institutions; (k) the suitability of having joint auditors to financial institutions with one being appointed by the Central Bank; (l) the possible introduction of a maximum term of five years for an auditor to a financial institution; and (m) any matters directly related to the foregoing.
These terms of reference are broader than that recommended in the DIRT inquiry report of the Committee of Public Accounts to the extent that I have also asked the review group to evaluate self-regulation in the auditing profession, that is, the first terms of reference above. The group has been asked to report to me by 31 May next.