Vol. 395 No. 8
15 Mr. Bell asked the Minister for Industry and Commerce the nature of the Eighth Directive; the date by which it must be implemented; the manner in which it must be implemented; whether the Companies Act, 1963 (as amended) will be required to be changed; the date by which he will publish his proposals in relation to same; if he has had consultations with the social partners and the accountancy bodies; and if he will make a statement on the matter.
The Eighth EEC Company Law Directive requires member states to establish minimum educational and professional training standards and examination requirements for persons responsible for carrying out statutory audits of annual accounts of companies and firms. It also puts an obligation on member states to ensure that statutory audits are carried out with professional integrity and that there are appropriate safeguards in national law to protect auditors' independence.
The Eighth Directive was due for implementation into the laws of member states not later than 1 January 1990. The implementation of the Eighth Directive will require amendments to the existing provisions of the Companies Acts, 1963 to 1986 relating to the area of the qualification and recognition of auditors.
Part X of the Companies (No. 2) Bill, 1987, which, as the Deputy is well aware, is at present before a Special Committee of this House, proposes to make certain changes in regard to the qualification and recognition of auditors, and I am at present considering whether to introduce amendments in this Part of the Bill to give effect to the Eighth Directive, or whether I should implement the directive by means of ministerial regulations under the European Communities Acts 1972-73.
I am sure the Deputy will appreciate that in these circumstances I am not in a position to indicate when I will publish my proposals.
Finally, in regard to consultation with the social partners, I should say that while I have not formally initiated any such consultations, I am always happy to receive and take into consideration the views of all interested parties, and a number of accountancy bodies have already contacted my Department to outline their particular views and concerns in regard to the implementation of this directive.
