ICAS seeks de-recognition of its regulatory status in the Republic of Ireland
ICAS seeks de-recognition of its regulatory status in the Republic of Ireland.
ICAS has applied to the Irish Auditing and Accounting Supervisory Body (“IAASA”) for de-recognition of our authorisation as a Recognised Accountancy Body (“RAB”) and a Prescribed Accountancy Body (“PAB”) in the Republic of Ireland. To date RAB status has enabled ICAS to license and regulate the conduct of audit work in the Republic of Ireland, as well as the awarding of an audit qualification which is recognised in that country.
Earlier this year, the ICAS Council approved a recommendation from the Regulation Board to surrender our status as a RAB. The decision was based on the diminishing number of ICAS firms which undertake audit work in the Republic of Ireland (i.e. only two firms), and the absence of CA students in Ireland. With Brexit leading to increasing divergence in audit regulation and standards between the UK and the Republic of Ireland, ICAS has now taken the step to withdraw from regulatory activities in this jurisdiction.
The Board of the Irish Auditing and Accounting Supervisory Authority (“IAASA”) has considered and is minded to grant our application. By letter dated 15 September, IAASA confirmed that it is minded to revoke ICAS’ recognition with effect from 22 December 2021. Details of this decision can be found on IAASA’s website.
PAB status is currently linked to RAB status, and so we expect that our RAB and PAB statuses will both end on 22 December this year.
ICAS has engaged with the small number of ICAS Members and firms who might be impacted by this development. For information, the key changes for Members and firms in respect of the Republic of Ireland are as follows:
- ICAS will no longer be able to authorise firms and Members to undertake statutory audit work in the country.
- Non-audit principals of firms which are authorised by other bodies for statutory audit work in the country will need to become reciprocal members of another RAB.
- Students who receive the CA qualification after 22 December 2021 will not have their audit qualification recognised in the country and would need to take additional steps – possibly in conjunction with a third party – to achieve that qualification.
- ICAS will not be able act as the anti-money laundering supervisory body for firms in the country.
- Insolvency practitioners undertaking personal and corporate insolvency work in the country may need to be authorised by a body other than ICAS for some appointments.
The changes apply to the Republic of Ireland only, and do not otherwise affect Members and firms in Northern Ireland. There will be no impact on Members in practice who provide accountancy and related services in the Republic of Ireland which are not listed above.
If you have not been contacted directly by ICAS, but believe that you may be impacted by the revocation of our RAB and PAB statuses, please contact Robert Mudge as soon as possible (email@example.com).