A European directive has replaced an Irish law
that prohibited statutory auditors from being a body corporate.

The new European Communities (Statutory
Audits) (Directive 2006/43/EC) Regulations 2010 represents a
significant change in the legal framework under which statutory
audits are conducted, according to Chartered Accountants
Ireland.

Most significantly, it introduces a measure of
protection for auditors compared with the previous liability
regime.

Chartered Accountants Ireland said the change
follows a long campaign for reform in the area of liability, but
that further reforms are still needed.

Chartered Accountants Ireland is currently
seeking legal advice on a number of aspects of firms’ incorporation
including:

  • Clarification of effectives dates;
  • Whether appointments held as public auditor
    may be held by incorporated entities; and,
  •  What effect it has with the audit
    regulations.

Chartered Accountants Ireland said it is also
working with the Irish Chartered Accountants Regulatory Board, the
Consultative Committee of Accounting Bodies in Ireland and other
interested parties to develop information and guidance on key
aspects of the new regulations.