Former Supreme Court judge, Mr Justice John Blayney, has opened his inquiry into possible professional misconduct by members of the Institute of Chartered Accountants in Ireland (ICAI) named in the McCracken report.

Mr Justice Blayney has met with his two inquiry committee colleagues - actuary and former VHI chief executive, Mr Brian Duncan and retired accountant, Mr Paddy Shortall - to agree a schedule of work.

The committee is expected to reconvene shortly to instruct its investigation team to gather evidence of possible professional misconduct by any ICAI members in the transactions highlighted in the payments to politician's tribunal.

ICAI members named in the tribunal report include: former Taoiseach, Mr Charles Haughey; Dunnes Stores trustee, Mr Noel Fox; and the Dublin accountancy firm Oliver Freaney, which acted as auditors to Mr Michael Lowry's refrigeration company, Streamline and financial consultant to Dunnes Stores.

The committee held a procedural meeting at the ICAI's Dublin headquarters yesterday. The meeting was also attended by two senior officials from the Department of Enterprise, Trade and Employment, who have been empowered to act as observers. The committee is understood to be keen to proceed swiftly with its investigation and will convene a series of hearings for any members implicated by the tribunal report as soon as the investigators report back. The investigating officers will be drawn from the accountancy body's joint monitoring committee, which regularly investigates allegations of misconduct in Ireland, Britain and Scotland. Their work is expected to take between four to six weeks to complete.

Under the ICAI's special disciplinary scheme, the committee has the power to commission thorough investigations and to seek information or evidence from any person, firm or government body. The ICAI is believed to have written to its members named in the tribunal report last month, putting them on notice that they may have to explain their role in relation to certain financial transactions to an inquiry. A formal summons will subsequently be issued where the committee deems it appropriate.

To date all but one member is said to have replied to the institute offering their full co-operation.

The hearings will focus closely on the role of its members where the tribunal uncovered tax evasion or a conflict of interest. Full sanctions, which can include the withdrawal of practising rights, can be imposed by the committee, where misconduct has been proven. The ICAI has undertaken to publish the findings of the inquiry together with details of any sanctions imposed on its members.

Mr Haughey is the only non-practising ICAI member named by Mr Justice McCracken. The hearings will be held in private.