DTI to delegate powers
The Department of Trade and Industry is to relinquish its responsiblity for recognising and monitoring the statutory auditing supervisory bodies, as part of its overhaul of the accounting profession.
Link: DTI audit report special
The DTI proposes that a more powerful Financial Reporting Council should take on the role of recognising audit supervisory bodies, which includes ACCA, ICAEW, ICAS and ICAI. The consultation document added that CIPFA had applied to be recognised as a supervisory body.
Proposals are set out in the documents for the new Investigation and Discipline Body, which will replace the Joint Disciplinary Scheme and cover all bodies recognised by the FRC.
The body would have powers to remove the eligibility to audit from firms and individuals, but the government wanted to avoid providing it with statutory powers except where appropriate in the public interest.
The government is, however, asking for comment on proposals from ICAS that the IDB should be able to ‘ask a court for an order to compel witnesses or require the production of documents’.
Comments and reaction to the proposals are due by the deadline of 10 June.