Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Chartered Accountants Ireland

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Ireland


    2. Name of member body:
      Chartered Accountants Ireland

      Or please specify name:



    3. Individual responsible for preparation:
      Heather Briers


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      FEE, CCAB-1 and CCAB (UK)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Companies Act 1963 to 2003
      b). the Enacting body: Government, Department of Enterprise, Trade and Employment
      c). date the Act or Code came into force: /


    25. How can IFAC obtain a copy of the Act or Code?
      All government legislation can be obtained on the website www.oireachtas.ie


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): Not for profit (only to the extent they fall into another category, for instance, if they are companies.)
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Accounts to consist of Profit and Loss Account and Balance Sheet, giving a true and fair view. UK accounting standards (issued by the Accounting Standards Board ("ASB") are promulgated in Ireland by the ICAI and must also be followed which require a cash flow statement and a statement of total recognised gains and losses (listed entities will not be subject to ASB standards as from 1 January 2005). Copies of UK accounting standards can be obtained from the ASB at the following link: www.asb.org.uk/asb/publications.
      Private companies As above
      Governmental
      Not-for-profit As above
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Auditor to state whether the accounts give a true and fair view and are properly prepared in accordance with the requirements of the Act. The standards to be followed are the UK AuditingStandards issued by the Auditing Practices Board.
      Private companies as above
      Governmental
      Not-for-profit as above
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Board of directors applies in the event of a vacancy, for example, if the auditor resigns during an accounting period.)
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Companies Acts 1963-2003
      In particular - Auditing - Companies Act 1990
      Financial Reporting - Companies (Amendment) Act 1986.
      The Listing Rules of the Irish Stock Exchange

    2. the Enacting body(ies)

      Department of Enterprise Trade & Employment

      The Irish Stock Exchange

    3. the latest amendment date?



    35. How can IFAC obtain a copy of the Legal authority?
      www.entemp.ie

      The Listing Rules are available at www.ise.ie


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      Half-yearly interim reporting


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      Reporting on corporate governance disclosures


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Board of directors applies in the event of a vacancy, for example, if the auditor resigns during an accounting period.)
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      Irish recommended practice is that individual audit engagement partners of listed company audit clients are rotated at least every 5 years. Other key audit parties at group level on listed entities should rotate at least every 7 years.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Companies Act 1963-2003 (See Note 1) 2003 Auditing Practices Board (APB)
      Other (please describe) (above also applies for private and not-for-profit entities) - additional detail available upon request)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      www.hmso.gov.uk

      Note 1 - Irish company legislation has been amended on an ongoing basis since 1963 to date. No consolidated Act exists although the Irish Company Law Review Group is currently working on such a consolidation.


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Auditing Practices Board (APB))


    44. For Auditing Practices Board (APB), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Private company limited by guarantee

      The Auditing Practices Board is a subsidiary of the Financial Reporting Council which is an independent body responsible for auditing and accounting standard setting, the oversight of the profession and the promotion of high standards of corporate governance in the UK. The Financial Reporting Council’s remit derives from reports issued by the UK Government. The professional bodies in Ireland as part of their recognition under Irish Companies Acts require auditors registered by them to apply APB auditing standards.


      b. Name of standards

      Statements of Auditing Standards (SASs).

      The Auditing Practices Board also issues Practice Notes, Bulletins and Statements of Investment Reporting Circular Standards.


    45. How many voting members does the standard-setting body have?
      15


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: All members of the Auditing Practices Board are involved on a voluntary basis except for the Executive Director who is an employee


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      40% of Auditing Practices Board members are required to be Responsible Individuals, i.e. eligible for appointment as company auditors under companies legislation. Any of the balance of 60% who are accountants may not be office holders of any accountancy body, nor involved in the governance of any accountancy body, nor partners in firms authorised to conduct audits. Representatives of the Accountancy Foundation, the Department of Trade and Industry, the Department of Trade and Enterprise in the Republic of Ireland, and the Financial Services Authority are entitled to attend and speak at meetings but not to vote.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Nomination Committee of the Financial Reporting Council leads the appointment of members of the Auditing Practices Board following best practice.


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      13 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      $1,788,034

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      0.559273



    52. To what entity is the standard-setting body accountable?
      The Financial Reporting Council


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Before publishing or amending a SAS or any other standard, the Auditing Practices Board publishes an exposure draft on its web-site, ensures that a hard copy of the document is circulated to the accountancy bodies and to other interested parties and allows at least three months, unless circumstances require a shorter period, for representations to be made on it. Where publications cause changes to be made to other previously issued publications, any such consequential changes are exposed for comments.

    2. accessibility of meetings (i.e., public or private)

      Private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Decisions to establish, publish, amend or withdraw a SAS or an exposure draft thereof requires a majority of the votes of all the members of the Auditing Practices Board (whether present at a meeting or not).

      Decisions to establish, publish, amend or withdraw non-mandatory notes, guidance and other material relevant to auditing requires a simple majority of the votes of the members of the Auditing Practices Board who are at a meeting where a quorum is present and at which the matter is decided upon.

      Any other questions are decided by a majority of votes actually case at a meeting. In case of an equality of votes, the chairman of the meeting has a second or casting vote.


    4. other relevant due process activities

      The Auditing Practices Board has established a Technical Advisory Group and publishes an review of its activities annually. For further details please see www.frc.org.uk/documents/pdf/apbstandingordersextractsforwebsite.pdf.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      10 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Auditor independence –Companies Act 1990 APB
      Professional Accountants in Business None The ethics codes of the accountancy bodies are amended annually ICAI, ICPAI (and for the next category)
      Professional Accountants in the Public Sector None
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      ICAI at www.icai.ie
      ICPAI at www.cpaireland.ie


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (APB)


    56. For APB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent regulator: part of the Financial Reporting Council (FRC)

      b. Name of standards

      Ethical standards for Auditors


    57. How many voting members does the standard-setting body have?
      15


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: All members of the Auditing Practices Board are involved on a voluntary basis except for the Executive Director who is an employee


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The members are appointed by the FRC to represent a wide range of stakeholders: auditors may be included, but no more than 40% of the total number. (See question 47).


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Question 48


    61. What is the term of appointment for members?
      4 Year(s)


    62. For how many years has the standard-setting body been in existence?
      12 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      $8,451,407.41

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      1.791



    64. To what entity is the standard-setting body accountable?
      The standard setting function of the APB is not directly accountable, other than to its board (see above). However, in the UK the POBA is charged with ensuring that the other FRC boards (including the APB) are functioning in accordance with their general remit, and an annual report is produced. In Ireland when commenced the Companies (Auditing and Accounting) Act 2003 will empower the Irish Auditing and Accounting Supervisory Authority to liaise with others including the APB and professional bodies in the development of auditing standards.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The APB has undertaken publicly that it will issue any draft standard for public consultation

    2. accessibility of meetings (i.e., public or private)

      The APB does not hold public meetings.

      The APB publishes agendas and minutes for its board meetings.


    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority voting applies

    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      4 Day(s)


    Section 6B -- Standard-Setting (ICAI, ICPAI (and for the next category))


    56. For ICAI, ICPAI (and for the next category), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      ICAI is a body established by Charter in Ireland and the United Kingdom.

      b. Name of standards

      Ethical Guide for Members


    57. How many voting members does the standard-setting body have?
      ICAI - Has 4 office-bearers, 13 elected members, up to 3 co-opted members and 1 public interest (‘lay’) members.


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Any member of the Institute is eligible to stand for election to Council. Elections are held each year to fill the vacancies left by retiring Council members. The Bye-laws of the Institute set out criteria with regard to the numbers of posts to filled generally and by specific classifications of members and certain geographical locations. In addition Council itself can co-opt members onto Council should it deem it appropriate to do so.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Question 57.


    61. What is the term of appointment for members?
      4 Year(s)


    62. For how many years has the standard-setting body been in existence?
      116 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?
      The ethical standard setting functions of the accountancy bodies are subject to oversight by the Public Oversight Board for Accountancy (POBA) in the UK and by the Irish Auditing and Accounting Supervisory Authority in Ireland when the relevant sections of the Companies (Auditing and Accounting) Act 2003 are commenced, to ensure they are in the public interest.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The accountancy bodies are not required to issue their ethical standards for public consultation but generally do where there are significant policy issues.

    2. accessibility of meetings (i.e., public or private)

      Private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority voting

    4. other relevant due process activities

      The accountancy bodies that register statutory auditors submit an annual report to the government which considers, inter-alia, any relevant ethical developments.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      5 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      Ireland operates a three level education process. The first is the primary level which ends at the age of 11. The second stage involves a set of examinations at the age of 16 (Junior Certificate) and a further set at age 18 (Leaving Certificate). On completion of the leaving certificate students can then apply to and attend University. Education is compulsory up to Junior Certificate level.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      There is no legal authority for an individual to act as an accountant. However S187 of the Companies Act 1990 sets out the eligibility criteria for registered auditors.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      For ICAI a minimum level of achievement is required at school leaving, however 95% of ICAI students are graduates
      Professional examinations
      For ICAI there are three professional examinations, students can obtain exemptions from all or part of the first two examinations depending upon their entry qualifications.
      Practical experience
      For ICAI all students must enter into a three year training contract with an organization approved by the ICAI to train CA students. If a member wishes to act as a registered auditor a further two years practical experience is required and provide evidence of a minimum level of audit experience.
      Final qualifying examination
      For ICAI – see above

      For ICPAI- see above
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      IAASA - Irish Accounting and Auditing Supervisory Authority, provided for in the Companies Act 2003 has not yet commenced.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The ICAI is a professional body of accountants based in Ireland (although it should be noted that ICAI is also statutorily established in the UK).

      Each body is governed by a Council and a number of committees made up of members and non members. The Council and committees are supported by a full time executive staff.

      Each body runs programmes to educate and train members before and after entry and both grant a qualification recognized in the State.

      Both bodies are recognized under Irish legislation to grant licences to member and or member firms to provide certain reserved services e.g. audit and investment business.

      Both bodies are self regulating bodies operating quality assurance programmes subject to external supervision by an independent oversight board.

    2. How many voting members does the relevant body(ies) have

      All full members are voting members- see 3F

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      ICAI- www.icai.ie

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Companies Act 1990 sets out the eligibility criteria and based on this the professional bodies establish their own licensing regimes


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      ICAI


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      None



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government See ICAI/ICPAI Attachment for response to Section 8. See Q 83
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Public Financial Procedures of the Department of Finance are available on line at www.finance.gov.ie

      Accounting standards applicable in Ireland are available from the ASB

      The Accounting Code of Practice and related procedures for Local Authorities are available from the Department of Environment and Local Government, Custom House, Dublin 1, Ireland.

      Accounting Standards for Health Boards and Agencies are available form the Department of Health and Children, Hawkins House, Hawkins Street, Dublin 2, Ireland.


      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (See Q 83)


    83. For See Q 83, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      As per Q82 no specific public sector standard setting body exists for non central government entities in Ireland. Central government accounting practice is determined by the Department of Finance and therefore Q84 onwards do not apply.

      b. Name of standards



    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Please see note 1 below UK Accounting Standards Board
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      www.asb.publications.com

      Note 1 - There is no legal authority in the Ireland that requires compliance with accounting standards. However, with effect from August 1990 UK companies, other than small and medium sized companies, have been required by the Companies Act 1985 to state whether their accounts have been prepared in accordance with applicable accounting standards and to give particulars of any material departure from those standards and the reasons for it. Section 41 of the Companies (Auditing and Accounting) Act 2003 when the relevant sections are commenced will require companies other than those defined as small or medium companies to state whether applicable accounting standards have been followed.

      With effect from January 2005, group accounts for listed companies will be required to comply with standards prepared by the International Accounting Standards Board, when they have been approved by the European Commission. The Government currently intends that individual companies, and other groups, will be able to choose to comply with IASB standards.


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (UK Accounting Standards Board)


    95. For UK Accounting Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Agency appointed jointly by government and private sector

      b. Name of standards

      Financial Reporting Standards


    96. How many voting members does the standard-setting body have?
      up to 10


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: 2 employed, up to 8 voluntary


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Not stated, but in practice there appears to be a balanced membership


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Financial Reporting Council (Regulators)


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      17 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      $3,810,600

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      1.80



    103. To what entity is the standard-setting body accountable?
      The Financial Reporting Council


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Draft standards are exposed for public comment

    2. accessibility of meetings (i.e., public or private)

      meetings are held in private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Seven members required to vote in favour when the Board has ten members; six when it has less than ten

    4. other relevant due process activities

      Draft standards are sometimes preceded by discussion papers, which are exposed for public comment


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Irish Stock Exchange
      Irish Financial Services Regulator Authority


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      The responsibility will pass to the Irish Auditing and Accounting Superviosry Authority shortly.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The precise role fo the New Irish Regulator (IAASA) is currently under discussion.

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      None, other than through their enforcement of the Listing Rules. This enforcement role is mainly concerned with pre-approval of information supplied with prospectuses or where shareholder approval is required



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Irish Stock Exchange



    Section 10B -- Stock Exchange
    Irish Stock Exchange Details


    110. For Irish Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      The Irish Auditing and Accounting Supervisory Authority. Duties include:

      • to supervise how the recognised accountancy bodies regulate and monitor their members;
      • to promote adherence to high professional standards in the auditing and accountancy profession;
      • to monitor whether the accounts of certain classes of companies and other undertakings comply with the Companies Acts, and
      • to act as a specialist source of advice to the Minister for Enterprise, Trade and Employment on auditing and accounting matters.


    2. The number of members on the oversight body

      Under the Companies (Auditing and Accounting) Act 2003, the Board of Directors of IAASA shall consist of not more than 15 directors including the Chief Executive Officer. Excluding the Chief Executive, not more than 4 of the directors may be a member of a recognised accountancy body.

    3. Its powers

      • To supervise the investigation and disciplinary procedures of each recognised accountancy body, including by requiring access to its records and by requiring explanations about the performance of its regulatory and monitoring duties,
      • to undertake investigations into possible breaches by a member of the standards of the recognised body to which it belongs;
      • to co-operate with the recognised accountancy bodies and other interested parties in developing standards relating to the independence of auditors and to monitor the effectiveness of those standards;
      • to monitor the effectiveness of provisions of the Companies Acts relating to the independence of auditors,
      • to co operate with the recognised accountancy bodies and other interested parties in developing auditing and accounting standards and practice notes.


    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      The oversight of the regulatory work of the recognised accountancy bodies is undertaken by a public company – the Irish Auditing and Accounting Supervisory Authority (IAASA) – established pursuant to statute (the Companies (Auditing and Accounting) Act 2003). The relevant sections formally establishing the IAASA will be commenced later in 2004. After this date the IAASA will have the authority to oversee the regulatory activities of the recognised accountancy bodies.

    5. The sanctions the oversight body may impose in the event of non-compliance

      The regulatory bodies for audit firms/auditors remain the RABs. Once the new legislation is enacted the IAASA will have the authority to seek a decision in the courts to levy a penalty of the accountancy bodies. In circumstances where the IAASA conducts an investigation into the conduct of a member firm the IAASA will have all the sanctioning powers available to the accountancy bodies.

    6. How the oversight body is accountable to any public institution or body

      IAASA will be accountable to the Irish Government


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Irish Financial Services Regulatory Authority www.ifsra.ie


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      The IFSRA monitors and enforces regulatory reporting requirements. It has no role in monitoring or enforcing financial reporting or auditing standards. The mechanisms for this in Ireland are set out elsewhere in this response.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      None

    2. accounting and auditing standard-setting

      None

    3. review of financial statements prepared by listed entities

      The IFSRA may review audited financial statements of regulated bodies as part of its overall supervision of banks. The purpose of this review would be to assess compliance with IFSRA rules, rather than monitoring of compliance with accounting standards.

    4. enforcement of accounting, reporting and auditing requirements

      IFSRA responsibility is limited to regulatory reporting. It has a range of enforcement tools available against regulated financial services businesses and individuals within those businesses. These include fines, suspension of licenses and criminal prosecution.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Irish Financial Services Regulatory Authority - See Section 10D for responsibilities.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Part III A, Central Bank Act 1942 updated by the Central Bank Financial Services Authority of Ireland Act 2003


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      None

    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Irish Financial Services Regulatory Authority


    119. What is the source of Legal authority of the regulatory authority(ies)?
      See Q 116.


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      None.

    2. accounting and auditing standard-setting

      None.

    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      The Recognized Supervisory Bodies, which includes ICAI.


    122. What is the source of Legal authority of each regulatory authority?
      The Department of Enterprise Trade and Employment delegates power under the Companies Act 1990 to the Recognised Supervisory Bodies (6 accountancy bodies, determined by the DETE)


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      The RSBs register auditors to carry out statutory audits (statutory audits in the UK can only be carried out by registered audit firms). The registered audit firms must comply with audit regulations set by the RSBs, who monitor audit work carried out. The RSBs also assess the outcome of the monitoring reviews and where necessary impose regulatory and if necessary disciplinary penalties.

    2. accounting and auditing standard-setting

      No formal responsibility: all accounting and auditing standards are set by parts of the independent oversight framework. However, the accountancy bodies do issue guidance on matters not covered by standards and these are generally accepted as best practice.

    3. review of financial statements prepared by listed listed entities

      No responsibility: all review work is undertaken by parts of the independent oversight framework and the IFRSA (see 10 A)

    4. enforcement of accounting, reporting and auditing requirements

      As noted in a. above, the RSBs have a regulatory role in respect of registered audit firms, consider the outcomes of monitoring visits and impose regulatory or disciplinary penalties, in accordance with the terms of the registration.

      While the accountancy bodies do not have direct responsibility for enforcing accounting and auditing standards, all accountancy bodies have disciplinary powers over their members as part of their charters and will investigate complaints and if necessary impose penalties. Failure to follow relevant standards would generally constitute a failure to follow the ethical or technical standards expected of a member and result in action.



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      ICAI has a system of Quality Review approved by the members which reviews the activities of professional firms.

      Auditors selected for monitoring on both a risk and random basis. Auditors will be selected at least once in a five year cycle.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Institute Bye-Laws.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      An inspection team recruited by the Institute for the purpose



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      For ICAI this function is carried out by the Complaints and Disciplinary Committees.

      Complaints Committee- not more than 12 persons a majority of whom will not be members of the Institute
      Disciplinary Committee- not more than 15 persons a majority of whom will not be members of the Institute



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      See Q 129


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job within the constitution as set out in Q130.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Council of ICAI


    134. What is the term of appointment for members?
      3 Year(s)


    135. For how many years has the body been in existence?
      116 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?
      IAASA


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      6 Day(s)



     

     

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