Irish Accountants Welcome Increase In Audit Exemption Income Threshold

by Jason Gorringe, Tax-News.com, London

06 September 2006

Members of The Institute of Certified Public Accountants in Ireland (CPA) on Monday gave an overwhelming welcome to the decision by the Minister for Trade and Commerce to increase the audit exemption income threshold from EUR1.5m to EUR7.3m.

“The decision will have far reaching consequences for our profession, but our members have overwhelmingly welcomed the proposal to increase the audit exemption income threshold," announced CPA President, Padraig O Feinneadha, continuing:

"It is expected that the move will yield significant benefits for Irish companies and will help them compete on an equal footing with their European and UK counterparts."

"Compliance and regulatory issues have been absorbing more and more time and resources of our small and medium sized companies. This measure will go some way towards relieving the burden of regulation for owner-managed businesses."

A survey of CPA practitioners conducted by the Institute found that:

• 97% of respondents welcomed the Minister’s decision to increase the audit exemption income threshold;
• 80% of practitioners expected that more than 80% of their corporate clients will no longer require an audit under the proposed new exemption limits;
• Under the current income threshold of EUR1.5million, 48% of practitioners reported that more than 80% of their corporate clients do not require an audit; and
• 32% of practitioners expect to move away from providing audit services as the demand for other value added services intensifies.

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