AUDIT - 2000's 'grey areas' remain

Although the English ICA’s latest guidance shows that the accountancy profession is seeking to protect itself against any potential liability arising from the computer millennium problem, the legal issues remain a ‘grey area’, according to Conservative MP David Atkinson.

Atkinson is the sponsor of a parliamentary bill that would require auditors to report on clients’ plans to combat the millennium bug. In response to the ICA guidance for auditors on the impact of the year 2000 on IT systems, the MP commented: ‘What they are proposing seems to be sensible and entirely compatible with my bill. The responsibility for compliance lies fairly and squarely on company directors.’

Atkinson added: ‘Of course, the accountants will have a vested interest in the financial viability of the company that employs them – I welcome that.’

An amended version of Atkinson’s bill received a first reading shortly before the House of Commons’ summer recess and will come before the house for a second reading on 28 November.

The Tory MP criticised the government’s latest initiative, Action 2000, as a continuation of its policy of ‘exhortation rather than action’ on the millennium issue. ‘As we know from the outcome of surveys, that is just not working,’ said Atkinson. ‘My bill is the only initiative which seeks to address this problem by changing the law.’

Robin Guenier, executive director of Taskforce 2000, which will be superseded by the Action 2000 group, said that the guidelines touched on a ‘very dangerous area’, and added: ‘The audit profession will always try to avoid getting involved in technology and other issues it doesn’t understand.’ But the basic precautions for the year 2000 boiled down to good management, said Guenier.

‘It’s a bit late for legislation as far as I’m concerned,’ said Guenier.

‘David Atkinson has raised his bill again, but by the time it gets on to the statute book, it will be too late.’

Nevertheless, the government appeared to heed calls from Taskforce 2000 to use its welfare-to-work scheme to train young people to help tackle the problem.

Guenier also advised the government to relax immigration laws to allow work permits to be issued to non-European IT experts.

‘There is a shortage of skilled IT people in this country at the present time, and the evidence suggests that our own skilled people are leaving for countries such as Germany, so we are losing people overseas,’ said Guenier.

‘People in India and Eastern Europe now have the skills that we lack in this country.’