IAASA The Companies (Statutory Audits) Bill 2017

Irish Auditing and Accounting Supervisory Authority [IAASA]

Extract From IAASA Annual Report for 2017

The Companies (Statutory Audits) Bill 2017 once enacted will bring forward sweeping changes to the regulation of the Recognised Accounting Bodies [RABs] under the remit of IAASA.

Companies (Statutory Audits) Bill 2017 – Significant Development

The Companies (Statutory Audits) Bill 2017 (‘the Bill’), which will replace Statutory Instrument SI 312, was published on 6 November 2017 and is currently proceeding through the legislative process. The principal provisions of the Bill which impact on IAASA and the Recognised Accountancy Bodies (RABs’) [ACCA, CPA, ICAEW, ICAI, ICAS and IIPA] respective roles in relation to auditors are that:

  • the RABs are deemed to be recognised for the purposes of the Bill and shall be required to perform the tasks in respect of statutory auditors specified in the Bill unless prohibited from doing so by IAASA. Consequently, the RABs will be required to perform all tasks relating to the licensing and registration, quality assurance, CPD and investigation & discipline of statutory auditors except those in relation to PIE audits that are performed directly by IAASA;
  • IAASA’s functions shall include the supervision of how each RAB monitors the statutory auditors for which it has responsibility by virtue of performing the tasks assigned to it;
  • the criteria for the RABs’ recognition are to be amended to require each body to satisfy IAASA, both at the time of recognition and on an ongoing basis, in relation to their: – standards for training and qualification of auditors; – standards applied to members in areas such as independence and ethics; – capacity to ensure members’ compliance with and the enforcement of its standards, having regard to its resources; and – effective performance of the tasks assigned to it in respect of statutory auditors.
  • IAASA’s powers shall include the ability to enquire into whether a RAB has performed a task in compliance with the requirements of the Bill, the EU Regulation or any other requirements set by IAASA; and
  • where a RAB is not able to perform a task, IAASA will have the power to perform the task or assign it to another RAB. During the year, IAASA staff liaised with both the Department and RABs to assess the impact of these provisions on the overall regulatory framework for the oversight of auditors and to plan for the enactment of the Bill, which is expected to take place in 2018.
Source: www.iaasa.ie