Written question asked by Stephen O'Brien (Conservative) on Monday, 27 January 2003, in the House of Commons. It was due for an answer on Wednesday, 5 February 2003. It was answered by Melanie Johnson (Labour) on Wednesday, 5 February 2003 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what (a) terms of reference and (b) guidelines have been set for the Government's review of the relationship between companies, their accountants and the awarding of consultancy contracts.

Answer: Mr. Stephen O'Brien: To ask the Secretary of State for Trade and Industry what (a) terms of reference and (b) guidelines have been set for the Government's review of the relationship between companies, their accountants and the awarding of consultancy contracts. [94397] Miss Melanie Johnson: My right hon. Friend, the Secretary of State for Trade and Industry, set out in her Statement to the House on Wednesday 29 January a range of measures to be taken by Government, business and regulators to address the concerns raised following last year's corporate and auditing scandals in the US. This includes measures to address the threats to auditor independence where an audit firm provides non-audit services to an audit client, such as consultancy services. The Auditing Practices Board will be reviewing this further as part of its newly expanded role as standard- setter on auditor independence issues.

Secondary information

Type: Written question
Reference: 94397; 399 c268-9W
Session: 2002-03
Subjects: Contracts Audit Accountancy Companies Consultants Conflict of interests Misconduct Regulation Auditing Practices Committee
Link: View this Written question on www.publications.parliament.uk