Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 16: To ask the Minister for Finance his views on the reliability of auditing reports in terms of their content; the actions or reviews that are being taken by his Department in looking at the suitability of the content of auditing reports; the discussions that are being had at EU and international level, of which he is party, on amending the content of auditing reports to consider a broader range of factors; and if he will make a statement on the matter. [24534/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I stated in answer to Question No. 76 of 28 April 2010, policy matters relating to the regulation of auditing and accounting bodies are the responsibility of my colleague, the Minister for Enterprise, Trade and Innovation.

The Deputy may wish to note that both of the preliminary reports into Ireland's banking crisis published last week - The Irish banking crisis: regulatory and financial stability policy 2003 – 2008, by the Governor of the Central Bank, and A preliminary report on the sources of Ireland's banking crisis, by Klaus Regling and Max Watson - have identified the need to further examine the role of auditors in the Irish banking sector.

One of the draft terms of reference for the statutory Commission of Investigation, set out by the Government on Wednesday 9 June, proposes that the Commission should give consideration to whether external auditors in each of the covered institutions commented in their audit reports or other communications to the institutions, on the failure to implement and adhere to appropriate standards and controls in the context of corporate governance and prudent risk management policy and procedures, or on the institutions' business models and strategies and business and lending practices.

It will be a matter for the Minister for Enterprise, Trade and Innovation and the relevant regulatory bodies to consider and decide on the appropriate next steps in relation to any conclusions the Commission of Investigation may make in relation to the role of auditors.