Vol. 516 No. 5
126 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps, if any, she has taken or plans to take arising from recommendations of the DIRT Sub-committee of the Committee of Public Accounts relating to areas for which her Department has responsibility; the terms of reference of the review group on auditing announced by her on 29 December 1999; when it will report; and if she will make a statement on the matter. [7997/00]
On 29 December last, I announced the establishment of a review group on auditing with the following terms of reference: whether self-regulation in the auditing profession is working effectively and consistently; whether any new or revised structures and arrangements are necessary to improve public confidence, and if so, what form should they take; the role of the external auditor in providing other services to the same institution; the impact of other functions such as tax advice and consultancy on the external audit process; the determination of fees, bearing in mind shareholder interests; the relationships between an external auditor and the management that appoints and remunerates him; the statutory provisions on auditing in the Companies Acts and related codes; the role of the external auditor in ensuring compliance with statutory provisions; the possible role of the Central Bank in regard to management letters issued by external auditors to financial institutions; the possible strengthening of audit standards relating to financial institutions; the suitability of having joint auditors to financial institutions with one being appointed by the Central Bank; the possible introduction of a maximum term of five years for an auditor to a financial institution and any matters directly related to the foregoing.
These terms of reference are broader than that recommended in the PAC's DIRT Inquiry report to the extent that the review group has also been asked to evaluate self-regulation in the auditing profession. I decided that this recurring theme in the profession over the past number of years was one which could usefully be addressed in the group's work.
Following a public advertisement seeking submissions by 31 January last on these terms of reference, over 30 bodies and individuals have made submissions to the group. The group has held two meetings to date and is progressing with its work.
The Committee of Public Accounts has asked that the review group report back to the Oireachtas within six months of the date of its report, by 15 June 2000. It is hoped that the review group will be able to meet this deadline. This will depend to some extent upon the progress of its work in the intervening period.
