Auditor's duty to report to the Director of Corporate Enforcement

Section 393(1) of the Companies Act 2014 sets out the duty on auditors to report to the Director of Corporate Enforcement in relation to certain offences under the Act.

The reportable offences are those specified in the Act as being category 1 and category 2 offences. 

This duty has not changed substantially from what was previously addressed by section 194(5) of the Companies Act 1990 (as amended). There have been changes, however, with regard to the reportable offences.  For example, there has been a reduction in the number of reportable offences due to the categorisation of offences and specification that only Category 1 and Category 2 are reportable by the statutory auditor. 


Technical Release

Chartered Accountants Ireland has produced a Technical Release, Technical Release 04/2015 Auditors’ duty to report to the Director of Corporate Enforcement’ to help members understand the issues and the key changes.



There are some changes to the categories of offences and a number of new reportable offences. 

New Offences

The Companies Act 2014 has introduced a number of newly reportable offences, regarding the:

  • Approval by directors of financial statements that do not give a true and fair view or otherwise comply with the requirements of the Act;
  • Requirement for a statement in the directors' report on 'relevant audit information';
  • Failure to comply with the requirements regarding the signing of the original balance sheet;
  • Approval by directors of abridged financial statements which have not been prepared in accordance with the Act.

Changed Offences

The Companies Act 2014 has also changed some previously reportable offences regarding: 

  • Adequate Accounting Records;
  • Statutory Auditor's Right to Information and Explanations;
  • False Statements in returns, financial statements, etc;
  • Other Reportable Offences.

Please see Technical Release 04/2015 for further discussion on these offences.


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