Hewitt spells out new rules

TRADE secretary Patricia Hewitt unveiled new rules governing directors and auditors, but disappointed business by delaying a Companies Act overhaul.

In the wake of the Enron accounting scandal, Hewitt is to table a Bill 'at the earliest possible opportunity' forcing directors to pledge they have not withheld evidence from auditors. Companies will also have to give details of any non-auditing work they hand out.

Auditors, who are charged with signing off company accounts, will gain new powers to grill directors and employees. The Inland Revenue will be able to pass on to regulators details of 'suspect accounts' uncovered during tax investigations.

However, trade bodies lamented the uncertainty caused by delaying the new Companies Act for up to three years.