Think-Tank Urges Extension Of Audit Ethics Rules To Third Parties

by Robin Pilgrim, LawAndTax-News.com, London

06 June 2005

Proposals put forward by the UK's Audit Quality Forum (AQF) could see bankers, lawyers and other third parties who provide information relating to audits being governed by the same ethical rules as auditors, according to reports.

Speaking to the Accountancy Age news service last week, AQF chairman, Gerald Russell explained that:

"At the moment, bankers lawyers, tax advisers, surveyors and the like are not covered by the same ethical guidelines that auditors are. Nor are there any legal constraints like there are on directors misleading auditors. That sort of thing doesn't appear to apply to third parties, even though they are important constituents of the chain."

The think-tank, which numbers amongst its members representatives of the accounting and investing communities, as well as government and regulatory officials, will put together a working party to examine the duty of care owed by third parties, and will then make an official recommendation on the matter.

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