Break up the old boys’ networks

■ I have no background in accounting, auditing, banking or finance.

To my mind, most, if not all, of our ‘financial headaches’ over the past 20 to

30 years have been caused by bad practices largely ignored by various regulators.

One of those must be where large companies, including banks and other lenders, are allowed, quite legally, to use the same auditors for years.

These same auditors are very often employed by said company as consultants, tax advisers, management gurus, etc.

This, of course, might be good for the auditing company in terms of extra fees (and handy for the employing company as it saves it time seeking other views), but in the long term these relationships could well become incestuous.

Our parliamentarians must agree to measures/laws/ministerial orders, whereby none of the top 10 auditing companies are allowed to audit the books of perhaps major banks, other major finance houses and companies with a turnover of more than €250m, more than one year in five.

This would also apply to non-audit work.

This would quickly break up any possible cartels or old boys’ clubs – although no doubt they would still play golf and sail together.

David Ryan

Co Meath