IAASA issues annual report
The 2020 report from the Irish Auditing and Accounting Supervisory Authority (IAASA) has just been published. IAASA directly regulates eight audit firms which, between them, audit 677 public interest entities (PIEs): 195 insurance entities, 28 credit instructions, 30 equity-listed companies, 301 debt-listed companies and 123 listed funds. The quality assurance reports on the monitoring by IAASA of these audits are in a separate publication.
In terms of enforcement, IAASA began two Section 934 investigations of possible contraventions of legislation by a statutory auditor and one Section 933 investigation into whether a prescribed accountancy body has complied with its approved investigation and disciplinary procedures. The outcome on one of these cases has been published.
IAASA also monitors the supervision by professional bodies of their non-PIE audit firms. At the time of the report there were five recognised accounting bodies (RABs), but since the surrender of registration by the Institute of Chartered Accountants of England and Wales and the Institute of Chartered Accountants of Scotland, there are now only three: ACCA, the Institute of Certified Public Accountants in Ireland (CPA Ireland) and Chartered Accountants Ireland (CAI). Between them, the RABs have 1,851 statutory auditors’ resident in Ireland, working out of 1,155 audit firms, 25% of which are ACCA regulated.
During the year, audit monitoring visits were conducted on 18% of ACCA firms, 12% of CAI firms and 23% of CPA Ireland firms. In the case of ACCA, the proportion of monitoring visit outcomes described as 'unacceptable with significant improvements required' improved from 30% last year to 20% this year.
Transparency reporting reviewed
IAASA has published a Thematic Review of transparency reporting by auditors under its jurisdiction (primarily auditors of quoted companies or auditors of banks or insurance companies).
Transparency reports are a requirement for audit firms that audit public interest entities, to present information about themselves on their website. It is an opportunity to describe their processes and systems, governance structure, and internal quality control system, and can also be used to communicate the firm’s assessment of challenges they are facing in relation to audit quality, as well as the effectiveness of their actions to overcome them.
With some exceptions, IAASA found that transparency reports were typically prepared to a good standard, compliant with the regulation and readily accessible.
Family leave extended
The Family Leave and Miscellaneous Provisions Act 2021 entitles working parents to an additional three weeks of paid leave for each parent.
Previously, parents were entitled to just two weeks of Parent's Leave. It also extends the period in which the leave can be taken to the first two years after the birth or adoption of a child.
The leave is non-transferable between parents to ensure that parents are encouraged and supported in taking time out from work with their child. It also removes an anomaly whereby same-sex couples were treated differently to heterosexual ones.
Note that Parent's Leave is different to Parental Leave, Maternity Leave and Paternity Leave. A summary of all the provisions in respect of leave for new parents is available.
AGM flexibility for credit unions
The Credit Union Act 1997 (Section 3A) Order 2021) allows an extension of the timeline to allow credit unions until hold their 2020 annual general meetings virtually to the end of June 2021.
Pay and file extended
Revenue has confirmed that the pay and file deadline has been extended from 31 October to 17 November. Taxpayers who file their 2020 Form 11 return and make the appropriate payment through ROS for preliminary tax for 2021 and income tax balance due for 2020 can pay and file by 17 November.
Charity disclosure advice
Example disclosures for charities that have been impacted by Covid-19 are available online. Although SORP is not yet compulsory in Ireland, the example disclosures are applicable for non-SORP trustee/director reports.
Keep up with DETE
The Department of Enterprise Trade and Employment has published its May 2021 Enterprise Newsletter. This has details of the new €5m Covid-19 Online Retail Scheme and the first meeting of the Regional Enterprise Plan National Oversight Group.
