Professional Standards

What we do

The Professional Standards Department of Chartered Accountants Ireland, along with relevant compliance and disciplinary committees, is responsible for the delivery of the Institute's regulatory and disciplinary obligations which derive both from statute and its own Bye-Laws and Regulations. The Regulatory Policy Board develops Institute policy with regard to regulatory matters and approves Institute Regulations governing regulation & discipline. The Chartered Accountants Regulatory Board (CARB), oversees and supervises how the Institute fulfils its regulatory and disciplinary remit.

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Professional Standards

Please be reminded that Individual Annual Returns are available for completion via the following link - https://individualannualreturn.charteredaccountants.ie/Login.aspx These were due to be received by 31 October 2019. Two reminders have since been issued and the final reminder is due to be sent on 10 December 2019.  If you have yet to submit your IAR, we would encourage you to do so as soon as possible to avoid receiving a final reminder letter.

Dec 04, 2019
Professional Standards

The Chartered Accountants Ireland ("the Institute") is aware that there have been some changes in the Professional Indemnity Insurance (PII) market over the last 12-18 months which would mean that firms find it more challenging (or time consuming) to renew cover than they have previously.  It could also mean that firms find that their premiums increase.  It is unclear whether this is a 'hardening' of the market or price correction, but the Institute understands that insurers are reviewing more critically the risks they are willing to accept and the price they will set cover for.  This may affect, in particular, firms with a claims/notifications history; those involved in ongoing legal action and/or firms engaged in activity which insurers perceive as more 'high risk' (e.g. tax mitigation schemes, investment advice, insolvency, M&A work). The Institute understands that the market for accountants' PII could be particularly limited in Q4 of 2019 as some insurers cease to write new policies or renew business during the final months of the year.  As always, the Institute recommends that firms prepare early for their renewal and that they take advice from a trusted and reputable broker or other advisor in taking out their insurance.  It is recommended that firms discuss their placement strategy with their broker to ensure that they have access to a number of different insurers. Firms have an obligation to make a fair presentation of the risk on taking out or renewing cover.  Therefore, in order to safeguard the indemnity available for a claim should it arise, it is essential that firms are open and transparent with their insurer / prospective insurer when taking out or renewing cover as to: The activities they undertake; Their claims history and any potential claims (or grounds to suspect a claim - 'circumstances'); Their disciplinary / regulatory history.

Nov 25, 2019
Professional Standards

Revised Audit Regulations – effective 1 January 2020 The Institute’s Audit Regulations and Guidance (‘the Audit Regulations’) have been updated to reflect the requirements of the Companies Act 2014 following amendment by the Companies (Statutory Audits) Act 2018 (‘the 2018 Act’).   The revised Audit Regulations will take effect from 1 January 2020 and replace the current Audit Regulations which have been in effect since 1 April 2017.   A draft version of the revised Audit Regulations and Guidance is now available to read here. The majority of the provisions of the 2018 Act were previously reflected in Irish law by S.I. 312 of 2016[1] and so are already addressed in the current Audit Regulations.    The key changes in the revised Audit Regulations are: Change in the eligibility criteria for firms with Irish audit registration This amendment of Audit Regulation 2.03 reflects the requirements of s.1473 of the Companies Act 2014 and relates to the composition of the body which is responsible for the management and administration of the firm.   Going forward, the management body of a firm with Irish audit registration must be composed of a majority of members (by headcount rather than voting rights) who hold the appropriate audit qualification.  The management body is whatever group is responsible for the administration and management of the firm.  This body could be a separate management board but does not have to be. The Institute’s Professional Standards Department (‘PSD’) recently wrote to audit compliance principals to inform them of this change and advise firms who do not currently meet these revised control criteria to begin to address this issue if the firm wishes to continue to be included on the Irish audit register.     Audit compliance principals with any queries on this issue can contact aq@charteredaccountants.ie for assistance. CPD requirements for responsible individuals There is an increased emphasis at Audit Regulation 3.17 and new Audit Regulation 3.17A on the requirement for every responsible individual to undertake appropriate audit related CPD.  Legal references The revised Audit Regulations have updated legal references to refer to the Companies Act 2014 (as amended) instead of S.I.312 of 2016 where appropriate.  Public auditor a concept of the past All references to ‘public auditor’ have been removed from the revised Audit Regulations as the 2018 Act removed this concept from Irish company law.   [1] European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No. 537/2014) Regulations 2016  

Nov 21, 2019