Irish Government Endorses New Accounting Regulator

by Jason Gorringe, Tax-News.com, London

27 June 2007

Irish Minister for Enterprise, Trade and Employment, Micheál Martin, has paid tribute to the work done by the Irish Auditing and Accounting Supervisory Authority (IAASA) during its first year of operation.

"IAASA is fulfilling (a) vital role in the regulation of the accounting profession," Martin commented as the authority released a report on its activities in the first year since the ending of the self-regulation era.

"I am impressed with the range of activities undertaken by IAASA in its first year of operation," the Minister remarked, "and with the headway which it has made in respect of reviewing the arrangements by which the accountancy bodies supervise their members."

This involved a detailed examination of the relevant procedures of 4 of the 9 prescribed accountancy bodies.

"In the process,” the Minister continued, “a number of issues were uncovered in relation to how these bodies discharge their functions, and IAASA did not hesitate to take the necessary and appropriate action in such cases."

On the EU front, IAASA has had a key involvement in arrangements for the inauguration of a new Community-wide regime for auditors - the so called 8th Directive - which will take effect in mid-2008, and will contribute to enhancing confidence in the financial statements and annual reports of companies across the EU, to the benefit of capital markets and the wider economy.

In its short existence to date, IAASA has also been given responsibility for enforcement of compliance by listed companies with the financial reporting aspects of the EU Transparency Directive, which takes effect in the current year.

The Authority also acts as a specialist source of advice to the Minister for Enterprise, Trade and Employment on auditing and accounting matters, and recently completed a report on the question of whether statutory protection should be afforded to the term ‘accountant’. The Authority recommended that the term should be restricted but that persons not entitled to call themselves accountants should be allowed to provide accountancy services to the public. The recommendation has now been sent for consideration to the Company Law Review Group.

In conclusion, Minister Martin congratulated IAASA on its work to date, observing that, "IAASA has already contributed to the improvement of the corporate governance landscape in Ireland and has staked a valid place in the country's commercial regulatory framework."

Recommended