The implications for auditors of a ‘No-deal Brexit’ - questions seeking clarification in relation to the advice from the Irish Attorney General to the Department of Business, Enterprise, and Innovation

Nov 29, 2018

We have recently updated you on information that has become available regarding audit registration status for those firms holding audit registration from Chartered Accountants Ireland (‘the Institute’) in the event of a ‘no-deal Brexit’.    You can see that information at this link.

https://www.charteredaccountants.ie/Professional-Standards/Public-Information/News/2017/Articles/important-information-re-implications-for-audit-registration-of-a-no-deal-brexit

In that update we referred to the announcement, in late October, from the Irish Auditing and Accounting Supervisory Authority (‘IAASA’) that, in the absence of any transitional arrangements that might be contained in any withdrawal agreement, and based on advice received from Ireland’s Attorney General, UK-based audit firms would no longer meet the eligibility criteria for approval as EU statutory auditors and therefore would not be entitled to hold audit appointments for Irish companies post Brexit.  After 29th March, therefore, UK-based auditors would be unable to sign audit reports on Irish entities and as such, will no longer be eligible for inclusion on the Irish audit register.  This situation would apply to all UK-based auditors regardless of which recognised accountancy body the firm is a member of.  

While it is hoped that the above scenario can be avoided by virtue of appropriate transitional arrangements, we are engaging with the Irish authorities to understand the implications of a no-deal Brexit for our members who are UK-based firms.  We have raised a range of questions with IAASA in that regard, including those set out below.  We understand that these will be discussed with the Department of Business, Enterprise and Innovation.  The Institute will keep you informed as we get any further clarifications.   If you have any additional questions in relation to the possible implications of a no-deal Brexit for your firm please share them with us at professionalstandards@charteredaccountants.ie.

You can read our key questions here.