Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-09-26-Speech-1-119"
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"en.20050926.15.1-119"2
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".
Mr President, I would like to thank the honourable Members for their contributions and for their great work in getting this very important Directive dealt with.
At the outset I probably should have declared that in my past life I was an auditor and I still pay an annual subscription to the Irish Institute of Chartered Accountants, even though, as I have said to many people, I would not like to be too reliant on any set of accounts I would now prepare for anybody. I suppose I should have said that at the outset.
Mr Doorn and others raised the question of audit reliability and personally I take a great interest in this particular area. I have urged my services to treat this issue with great urgency. The study will be commissioned shortly so that we should be ready to put forward our findings before the end of 2006. That is our intention and hopefully it will be possible to adhere to that timetable with some ease.
The question was also raised about audit committees. Audit committees are often necessary to help auditors keep their backs straight against possible pressure from management. The European Parliament and the Council support the view that as much leeway as possible should be left to the Member States of the EU to invent their own system for audit committees of listed companies as long as they perform all the functions listed in our Directive. We have been flexible here to accommodate these concerns as far as possible.
Perhaps, as Mrs McCarthy said, you can have to best rules-based system in the world, or at least think you have the best rules-based system in the world, but it will never prevent a scandal or fraud if more than two people collude in trying to ensure that some fraudulent activity takes place; no matter whether or not we have a rules-based system – and remember, they had a rules-based system in the United States for some time and it did not prevent any of the scandals on that side of the Atlantic, and nor of course will an absolutely principles-based system either. No auditing procedures in the world and no internal control mechanisms put in place will be able to 100% guarantee that fraud or financial wrongdoing will never take place. However, it should, after the shortest possible period of time, allow people to find out exactly what is going on. It is very important for business and for everybody that people have confidence in the auditing profession, confidence in the independence of auditors, in the type of standards that they adhere to and in the ethics of the profession.
I am afraid that I would have to accept, as an erstwhile member of that profession, that the scandals of recent years have undermined the public's confidence in the auditing and accounting profession. I think that goes without saying and it is the job of the profession to make sure that confidence is restored and that the various changes that have been made, both within the profession and now by the European institutions, as well as what hopefully the Members States will do, will give people greater cause to believe that the standards of the auditing profession are as high as we can make them.
Again as I have said, the question of comitology was raised as it was in the previous debate, and I repeat that the proposal to suspend it after two years, except for Article 26, is acceptable to the Commission in this particular Directive.
I thank the Members for their detailed contributions."@en1
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