The late accountant Des Traynor told the auditor of Kentford Securities Ltd, a company allegedly controlled and used by Mr Traynor for controversial bank account withdrawals and tax evasion, that Kentford was a trust company with "in and out" transactions which were "confidential", the High Court heard yesterday.

Patrick McCann, a certified public accountant against whom the Office of the Director of Corporate Enforcement (ODCE) is seeking disqualification orders, said Mr Traynor had told him Kentford was a trust company, that any transactions were of an "in and out" nature and that Kentford had no beneficial interest in such transactions, which were confidential. He said Mr Traynor "asked me to accept him at his word; he had a good reputation and I accepted his word".

Mr McCann said he had been asked to audit the trust accounts, not trustee accounts, and he did not make inquiries about the nature of the transactions referred to. He said he knew nothing about the Kentford role in the Ansbacher deposits.

At the time, he had just qualified. He had never audited a trust before or since, Mr McCann said. With hindsight and with the benefit of 16 years' post-qualification experience, he would approach the audit in a different matter now. He accepted that, at the time in question, he should have received sight of the trust deed for Kentford. With hindsight, he should have made more detailed inquiries and found out more about what Kentford did, he said.

He said he had asked Mr Traynor for the trust deed and Mr Traynor had told him he would be able to see it, but he had never actually seen the deed.

Mr McCann, who practices under McCann & Associates, was being cross-examined by Brian Murray SC, for the ODCE, in the hearing of an application by the director to disqualify Mr McCann from involvement in the management of any company. The director alleges he is unfit to be involved in the running of any company arising from his conduct as auditor of Kentford.

Mr McCann was auditor from 1990 to 1993 to Kentford, which was allegedly used by Mr Traynor, who died in May 1994, to facilitate cash withdrawals by certain persons from Ansbacher (Cayman) Ltd deposits held in Ireland and tax evasion by such persons. Mr Traynor is alleged to have effectively controlled the bank accounts in the name of the company in both Guinness & Mahon (Ireland) Ltd and the Bank of Ireland.

The director claims Mr McCann committed an offence by serving as auditor while also being a director of Kentford, produced "materially misstated" financial statements for Kentford, issued "a false audit opinion" on these financial statements and produced "a forged letter" to justify the basis of his audit approach for Kentford. Mr McCann has denied the claims.

Yesterday, Mr McCann said the request to do the audit for Kentford had come from Mr Traynor via Sam Field-Corbett who, according to a report from an authorised officer into Kentford, ran Management & Investment Services Ltd (MIS), a company formation and secretarial company, with addresses at Trinity Street, Dublin 2 and later Winetavern Street, Dublin 2. Mr McCann worked for MIS.

Mr McCann agreed he had signed various documents for Kentford for financial institutions. He said this happened after he had resigned as a nominee director of the company. He said he was asked by Mr Corbett to sign those documents.

The relationship between Mr Traynor and MIS was via Mr Corbett, he said. The staff of MIS, including himself, did not have a relationship with Mr Traynor. It was Mr Corbett who decided what companies he should resign from as nominee director with a view to securing audits for such companies at a future date, he said. Mr McCann said Mr Traynor made all the relevant decisions relating to Kentford. The directors of Kentford were nominee directors with no involvement in its day-to-day running. It was not unusual when companies were incorporated for members of MIS staff to go in as nominee directors.

He said he had no direct contact with Mr Traynor until he was asked to do the audit. When he was first employed by MIS after he qualified in 1987, part of his function was to act as nominee director for Kentford. Correspondence for Kentford was conveyed unopened to Mr Traynor. He agreed Mr Traynor's name had not appeared on any public file associated with Kentford.

The hearing continues today before Mr Justice Michael Peart.