Accounting, auditing & liquidator requirements in Ireland
A one stop shop for Irish requirements.
Audit Regulations applicable in Ireland
- The Audit Regulations set out the regulatory requirements that all ICAS audit registered firms must comply with.
- The same Audit Regulations apply to UK and Irish audit registered firms, and to UK and Irish audits.
- They can be accessed in the Charter, Rules and Regulations section of our website (by searching on “charter”)
Audit News 63 highlighted the changes to the regulations with an effective date of 1 April 2017 to bring in various Irish legislative changes.
Irish Auditing Standards
As highlighted in Audit News 62:
- On 15 June 2016, the Minister for Jobs, Enterprise and Innovation signed the European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, And Regulation (EU) No 537/2014) Regulations 2016 (S.I. No. 312 of 2016) which came into operation on the 17 June 2016. One of the impacts of the Regulations is that IAASA is now responsible for the adoption of the auditing framework in Ireland.
- IAASA consulted on the most appropriate approach to developing the auditing framework and concluded that this should be based on the FRC Auditing Framework for the UK.
- On 31 January 2017, The Irish Auditing and Accounting Supervisory Authority (IAASA) adopted the Auditing Framework for Ireland.
- IAASA obtained a license from the UK’s Financial Reporting Council (‘FRC’) to tailor the UK FRC audit framework for use in Ireland, including the ISAs, ISQC1 and Ethical Standard. This work was completed and the Standards adopted; mandatory for use in auditing financial statements of periods beginning on or after 17 June 2016, for which audit opinions are signed after 1 February 2017.
- Note that, at this stage, there are no significant changes from the requirements of the revised UK standards.
- For audits of financial periods beginning before 17 June 2016, the FRC’s Ethical Standards ES1-5 and ISAs (UK and Ireland) continue to be the appropriate standards.
The Irish Auditing Standards can be accessed on the standards section of the IAASA website.
The Irish Auditing and Accounting Supervisory Authority (IAASA)
- a Prescribed Accountancy Body; and
- a Recognised Accountancy Body (i.e. a body
in Ireland and is subject to IAASA supervision.
The Irish Auditing and Accounting Supervisory Authority (IAASA) is the independent body in Ireland responsible for the:
- examination and enforcement of certain listed entities’ periodic financial reporting;
- supervision of the regulatory functions of the Prescribed Accountancy Bodies ('PABs'); and
- the inspection and promotion of improvements in the quality of auditing of Public Interest Entities (‘PIEs’).
For more information on IAASA please visit IAASA’s website.
The main financial reporting frameworks in use in Ireland are IFRS (as endorsed by the EU), issued by the International Accounting Standards Board (IASB) and Irish GAAP, issued by the Financial Reporting Council in the UK (FRC) and promulgated for use in Ireland by Chartered Accountants Ireland.
More information on Financial Reporting please refer to the related links below.
Companies (Accounting) Act 2017
- The Companies (Accounting) Act 2017 was signed into law on 17 May 2017, and generally takes effect from 9 June 2017, with some exemptions.
- The main purpose of the Act was to transpose the EU Accounting Directive 2013/34/EU into Irish law, amending the Companies Act 2014 to give effect to the provisions in the Accounting Directive relating to the statutory financial statements and related reports of companies.
Among the key changes are the introduction of an optional, simplified regime for certain micro and small companies, and increased small and medium size thresholds for companies and groups.
Liquidators - PC requirements
- The Companies Act 2014 S 633 and S 634 (which came into force on 1 June 2015) sets out the qualification requirements for liquidators in Ireland.
- S 633, in relation to ICAS members, requires that the liquidator must be:
- a member of a prescribed accountancy body, within the meaning of Part 15, being a person who holds a current practising certificate issued by that body; and
- is not prohibited by virtue of rules of that body or a direction, ruling or decision of that body, or any disciplinary or professional practice committee of it, from acting as a liquidator.
- ICAS is a Prescribed Accountancy Body in Ireland and requires all Members to hold a Practising Certificate for any Irish insolvency appointments, not just liquidations. For more information please see the Practising Certificate section of our website
Liquidators - PII requirements
- S 634 of the Companies Act 2014 requires that professional indemnity insurance is held.
- IAASA has recently published the Companies Act 2014 (Professional Indemnity Insurance) (Liquidators) Regulations 2016 (“the Regulations”) setting out the Professional Indemnity cover requirements for liquidators in Ireland.
- The Regulations came into effect on 1 June 2016.
- A minimum level of cover of €1,500,000 is required for each and every claim with defence costs in addition.
- Anyone acting or intending to act as a liquidator to a company in Ireland should ensure that their professional indemnity insurance satisfies the requirements of the Regulations in addition to the ICAS PII Regulations.
The following editions of Audit News, provide updates on Irish requirements:
- Audit News 62: Changes re Irish Auditing Standards
- Audit News 63: Audit Regulations updated for Irish changes