§ Mr. Austin Mitchell
To ask the Secretary of State for Trade and Industry what are the functions of the recognised supervisory bodies to be created under the Companies Act 1989 in respect of disciplining(a) auditing firms and (b) individual partners in auditing firms.
§ Mr. Redwood
Under paragraph 10(1) of Schedule 11 to the Act, a recognised supervisory body must have inter alia adequate arrangements and resources for the effective enforcement of compliance with its rules. This could entail disciplinary action against individual partners as well as against the audit firm itself.