Audit Of Auditors

EDM number 684 in 2001-02, proposed by Austin Mitchell on 18/01/2002.

That this House expresses its concern at the failure of auditors to control the off-balance sheet and other activities which led to the collapse of Enron and the similar audit failures in such British companies as Queens Moat House Hotels, BCCI, Barings, Schroders, Equitable Life, Independent Insurance, Resort Hotels, Versailles, Transtec, British and Commonwealth, Wickes, Polly Peck, Maxwell and many others; and urges the Government to prohibit the sale of non-audit services to audit clients in view of the collusive dependence this generates between auditor and company and the incentive it provides to debase the audit by using it as a loss leader to sell other services to the audit client, and to limit the term of years an auditor can be appointed to a company.

This motion has been signed by a total of 42 MPs.