Tánaiste Announces Review Group on Auditing Group to be Given Wide Terms of Reference Harney Asks Group to Report Before the End of May, 2000

Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney, today (Wednesday 29 December, 1999) announced that she has decided to establish a Review Group to examine and report to her on the auditing profession. The Review Group on Auditing will be given wide terms of Reference and will be asked to complete its report before 31 May, 2000.

Commenting on the decision to establish the Group, the Tánaiste said: "The auditing profession is an extraordinarily important part of our business life. The complexity and diversity of roles and relationships in which auditing firms are increasingly involved, makes this an opportune time to examine how the profession goes about its business and to ensure that it operates according to the highest professional standards."

"My commitment to ensure the highest possible standards in matters of corporate governance in Ireland is a matter of record. I have already set about establishing a new Office of the Director of Corporate Enforcement in order to ensure better and more effective compliance with the statutory provisions of the Companies Acts and related codes. I hope the new Office will be operational early in the new year. My decision to establish a Review Group on Auditing at this time simply underlines my commitment in this area. In a fast changing and increasingly competitive global environment, we in Ireland must ensure that we conduct our business and financial affairs in a manner that is above reproach," added the Tánaiste.

"The recent DIRT Inquiry Report raised a number of issues in regard to the auditing of financial institutions and recommended the establishment of a review group. I will be asking the Group to take on board and report to me on all of the issues raised by that Inquiry. However, I do not intend that the terms of Reference for the new Group should be confined to those issues alone. Consequently, I will be asking the Group to report on the operation of self-regulation in the auditing profession generally and to examine whether or not new or revised structures or arrangements might be necessary to improve public confidence," said the Tánaiste.

"I hope to finalise composition of the Group early in the new year but in the meantime my Department will be inviting comment from interested parties in regard to any aspect of the Group's work," concluded the Tansiste.