Dáil Éireann debate -
Tuesday, 29 Feb 2000

Vol. 515 No. 3

Written Answers. - Review Group on Auditing.

Nora Owen

Question:

93 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the terms of reference for the review group on auditors; the names of the members who have been appointed to this body; when she will have a report from the group; if she has satisfied herself that there are sufficient consumers of auditors services on the body and if she will make a statement on the matter. [5953/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

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.

The review group is being chaired by Independent Senator, Mr. Joe O'Toole, and the other members of the group are: Mr. Terence O'Rourke, the Institute of Chartered Accountants in Ireland; Mr. David Leonard, the Association of Chartered Certified Accountants; Mr. Alan Farrelly, the Institute of Certified Public Accountants in Ireland; Mr. Brendan Dennehy, the Institute of Incorporated Public Accountants; Professor Niamh Brennan, University College Dublin; Dr. James Stewart, Trinity College Dublin; Ms Ann Fitzgerald, Irish Association of Investment Managers; Mr. Robert Grier, Irish Business and Employers' Confederation; Mr. Shay Cody, the nominee of the Irish Congress of Trade Unions; Mr. Joseph Brady, Carrick-on-Shannon; Dr. Irene Lynch-Fannon, University College Cork; Mr. John Corcoran, Department of Enterprise, Trade and Employment; Mr. Conor O'Mahony, Department of Finance; Mr. Colm Dunne, Office of the Comptroller and Auditor General; Dr. Liam O'Reilly Central Bank of Ireland and Mr. Jim Kelly, Office of the Revenue Commissioners.

In forming the review group, I set out to achieve a broad balance in representation between auditing body nominees, the State sector and independent members. I am satisfied that the group comprises sufficient consumers of auditing services in the form of State, business and employee representatives and academic members.