Tánaiste Welcomes Publication of the Report of the Review Group on Auditing

The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Mary Harney, T.D., today (Tuesday, 11 July, 2000) welcomed the publication of the Report of the Review Group on Auditing. This Report was presented to and discussed by the Public Accounts Committee (PAC) this morning.

In welcoming the publication of the Report of the Review Group, the Tánaiste paid particular tribute to its Chairman, Senator Joe O’Toole. She also thanked the other members of the Group as well as the staff of her Department who acted as the Secretariat to the Group. "Each of the members gave freely of their personal and professional time to contribute to this important work. I also understand that the members of the Review Group worked very well together. This is a tribute to the skills of Senator O’Toole in his difficult role of Chairman".

"This review of auditing in Ireland has been a fundamental examination of the practices and structures of the auditing profession. Its terms of reference were inspired firstly by the PAC’s DIRT Inquiry Report. However, part of the Review Group’s mandate dealt with self-regulation. This was included by me in the Group’s terms of reference having regard to my own concerns about the regulation of the profession. These concerns arise from the disclosures in various tribunals of inquiry, starting with McCracken, and from my Department’s own company investigations in recent years", the Tánaiste added.

She continued "I believe that this is the first occasion since the foundation of the State on which the subject of auditing has received such detailed attention. It is a very important and comprehensive piece of work. A huge amount of effort has been invested in this project, and the work has been done in a very short timescale".

"It is clear from the Report that the Review Group is recommending a process of reform and renewal of legislation, standards and practices in auditing and in the accountancy profession in general. It is important that we create a system for the future which encourages a culture of compliance in all areas of Irish corporate life. The new Company Law Enforcement Bill is one such contribution which is already in hands. The recommendations in this Report are addressing another important area of corporate governance", the Tánaiste said.

"Most accountants and auditors adhere to high professional standards. I want to ensure that the system of future regulation is a positive influence on standards throughout the profession. With this in mind, I have decided to give an opportunity to the professional bodies, the users of accountancy services and the public in general to make known to me their views on this Report and particularly on its recommendations. I intend in the Autumn to consider the representations that are made to me and to bring a package of proposals to Government for early decision. Like the Review Group, I am anxious that we make early progress in addressing the public concerns which have arisen in the recent past and in creating confidence that high professional standards will obtain in the auditing and accountancy professions in the future", the Tánaiste concluded.