PracticeAuditHewitt spells out DTI auditor review

Hewitt spells out DTI auditor review

Speaking during a Mansion House speech Patricia Hewitt, secretary for the Department of Trade & Industry, said the Treasury, the Financial Services Authority and the Accountancy Foundation would be pulled together to form a special group to address the role of auditors in the UK.

‘We have all been shocked at the speed and scale of the dramatic collapse of Enron,’ said Hewitt.

‘We need to be sure that our systems of financial reporting and audit regulation are robust enough.

‘This is why I have set up a group jointly with the Treasury, Financial Services Authority and the Accoutancy Foundation to co-ordinate our response to the issues raised by Enron.

Hewitt said that ‘while the accounting and regulatory requirements in the US are significantly different to the UK, it is crucial that we address issues which may question the integrity of markets, It is also vital that our respinse fits well with our overall company law reform process.

‘I am determined that the outcome should be measured, thought through and carefully judged.’

Accountancy Age revealed at the beginning of the month the Foundation was to make auditor independence one of its top priorities. The FSA is also already known to be examining various issues relating to auditors including the possibility of compulsory rotation.

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