Financial Reporting

This week Chartered Accountants Ireland was delighted to host the 28th Audit & Assurance Conference of the British Accounting & Finance Association (BAFA). This is a major event in the academic conference calendar which attracts academics from Ireland, the UK, and beyond.  The Institute welcomed some 90 leading academics specialising in the area of statutory audit and who received a number of academic research papers and case studies on statutory audit and the role of auditors. Plenary sessions addressed the future of audit and assurance, and the future of audit standard setting and included contributions from Big 6 audit partners, regulators, and standard setters. At the commencement of the 2 day conference, Dr Ilias G Basioudis, chairman of the Auditing Group of BAFA said: "This conference is taking place at a critical time for the auditing profession.  Over the next two days we shall be discussing major challenges facing audit and possible measures that might be considered to underpin public confidence in the profession and provide a greater understanding of the role of audit.  "Crucially, we shall also debate what more can done by auditors to provide assurance on company viability, recognising that this debate will require legislative change and input from audit practitioners, regulators and legislators.  The fact that this conference has attracted contributors from around the world also demonstrates the global nature of the auditing profession and the importance of identifying confidence building measures and initiatives that have global acceptance and are capable of global application." Click here for images from the conference. 

May 25, 2018
Audit

Technical Alert 02/2018 published to provide assistance to auditors of insurance undertakings Chartered Accountants Ireland has published Technical Alert 02/2018 Illustrative auditor’s reports on the relevant elements of the Solvency and Financial Condition Report (SFCR) for periods beginning on or after 17 June 2016.   This Technical Alert provides illustrative auditor’s reports on the relevant elements of the SFCR, performed in accordance with ISAs (Ireland), the new Irish auditing framework.   The following illustrative auditor’s reports are included in Technical Alert 02/2018: An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (life insurance undertaking) - such period beginning on or after 17 June 2016 (solo entity using the standard formula) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (non-life insurance undertaking) – such period beginning on or after 17 June 2016 (solo entity using the standard formula) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (life insurance undertaking) - such period beginning on or after 17 June 2016 (solo entity using the partial or full internal model) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (non-life insurance undertaking) – such period beginning on or after 17 June 2016 (solo entity using the partial or full internal model) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] – such period beginning on or after 17 June 2016 (group insurance undertaking using the standard formula) This Technical Alert should be read in conjunction with Section 3 of Technical Release 13/2016 Guidance for auditors of insurance undertakings in Ireland.   Technical Release 13/2016 gives guidance to auditors engaged to provide a reasonable assurance opinion in relation to the relevant elements of the Solvency and Financial Condition Report (‘SFCR’) of an insurance undertaking pursuant to Regulation 37 of the European Union (Insurance and Reinsurance) Regulations 2015 (SI 485 of 2015) (‘the 2015 Regulations’).   Technical Alert 02/2018 is available to read here.

Apr 03, 2018
Audit

Chartered Accountants Ireland has published Technical Alert 01/2018 Illustrative auditor’s report for the audit of financial statements prepared in accordance with the Micro Companies Regime of Companies Act 2014 and FRS 105.   The purpose of this Technical Alert is to provide guidance in relation to matters to be considered by an auditor in the circumstances where an auditor is forming an opinion on the financial statements of a micro company adopting the micro companies regime of the Companies Act 2014 (“the MCR”) and applying FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime.      Micro companies usually qualify for audit exemption under the Companies Act 2014; however, a company can lose its audit exemption where the company is late in filing its annual return.  In these circumstances, and other cases where the directors of a micro company voluntarily decide to subject the financial statements to an audit, the auditor will need to be alert to the particular characteristics of forming an audit opinion in respect of financial statements prepared in accordance with the MCR and FRS 105.  This Technical Alert highlights some of the key issues in forming an audit opinion in relation to this compliance framework and also provides an illustrative auditor’s report.    Technical Alert 01/2018 is available here.

Apr 03, 2018
Audit

The Registry of Credit Unions (RCU) has recently uploaded the slides from its auditor roundtable held in July.  The slides are available on the RCU section of the Central Bank’s website.  Members should note that a number of the key issues raised at the roundtable are being addressed in the Credit Union Auditor Update event being held at Chartered Accountants House on Wednesday 27 September.  Presenters at the event include a representative of the RCU on the issue of reporting to the Registrar.  Please click here for more details on the event.

Sep 21, 2017
Information Technology

On 20 September 2017, despite traffic chaos and the early start we were delighted to welcome attendees to hear more about our upcoming Certificate in Cyber Security which is due to start in October 2017. This programme was developed in response to interest in this area from our members and the wider business world. We worked closely with KPMG to devise a curriculum and syllabus that will be relevant and interesting to all, no matter the aspects of interaction with data they may have. The programme can be taken by classroom or distance learning and will be taught by leading practitioners with technical and legal expertise. Speaking at the session and delivering the programme in October were Tony Hughes: (Associate Director, Risk Consulting, KPMG), John Harkness (Manager, Forensic Technology, KPMG) and Gordon Wade (Manager, Legal Services, KPMG). Each spoke of the content they will address in their respective areas across this four-module programme. You can see pictures from the presentation here. Cyber security is an ever-changing area that impacts on all of our daily working lives. Either by accident or malice, employees, technologies and systems can open our organisations up to a breach. This programme will give you the knowhow, overview and vocabulary to make you and your team more aware of risks and protections. Sole practitioners, small firms, multinationals, government departments…data and cyber security are paramount for maintaining legal compliance, revenue, reputation and confidence for staff and clients alike in organisations of all sizes. The  Certificate in Cyber Security will start in October 2017 and you can enrol now. More information about the programme is available here and you can contact us anytime for more information.

Sep 20, 2017
Audit

Chartered Accountants Ireland (‘the Institute’) has published the latest in its series of Technical Releases  – Technical Release 01/2017, Guidance for Auditors Reporting in Accordance with Investor Money Regulations for Fund Service Providers.  The purpose of this Technical Release is to provide guidance to auditors performing an assurance engagement pursuant to the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) Investor Money Regulations 2015 for Fund Service Providers (‘the IMR’).  The IMR came into effect on 1 July 2016 for fund service providers.  The Technical Release has been developed in consultation with the Central Bank of Ireland.    Technical Release 01/2017 sets out the principles underlying the work to be performed in providing an auditor report on an investor money examination.   It does not provide a checklist of specified procedures to be undertaken.  The auditor determines the appropriate procedures to be undertaken in the circumstances of the particular investor money engagement based on the requirements of ISAE 3000 and with the assistance of the Technical Release. Investor money examinations are highly specialised assurance engagements, requiring the auditor to maintain specific competence/expertise in the areas of: Controls assurance skills; Knowledge of the regulatory environment in which fund service providers holding investor money operate including the IMR and related guidance; Knowledge of products offered by fund service providers; Insolvency law. Technical Release 01/2017, Guidance for Auditors Reporting in Accordance with Investor Money Regulations for Fund Service Providers is available on the Institute’s website and will also be available on CHARIOT in due course.  

Jun 15, 2017
Audit

In January 2017 the Irish Auditing and Accounting Supervisory Authority (“IAASA”) introduced the new Auditing Framework for statutory audits in Ireland called ISA’s (Ireland). This Technical Alert highlights to members the key new requirements of the Auditing Standards applicable in Ireland under this new auditing framework. The ISAs (Ireland) standards are mandatory for use in auditing statutory financial statements of Irish companies with periods beginning on or after 17 June 2016. For audits of financial periods beginning before 17 June 2016 the FRC’s Ethical Standards ES1-5 and ISAs (UK and Ireland) continue to be the appropriate standards. The requirements of the standards can apply differently depending on the type of entity being audited, with the majority of requirements applying to all entities, certain additional requirements applying to both listed entities and PIEs, and other requirements applying only to PIEs. This Technical Alert categorises the new requirements applying to different types of entities. Technical Alert 02-2017 ISAs (Ireland) also includes a number of example audit reports : Auditor’s report on financial statements of an Irish Company – Private Group Auditor’s report on financial statements of an Irish Company – Listed Auditor’s report on financial statements of Irish Company - Listed PIE Auditor’s report on financial statement of Irish Company – Private Company

Jun 09, 2017
Audit

IAASA has published its annual Profile of the Profession which contains statistical data regarding the nine Prescribed Accountancy Bodies within IAASA's supervisory remit in Ireland for the year 2016.

May 26, 2017
Audit

Chartered Accountants Ireland has issued Technical Alert 01/2017 Revision to Technical Release 13/2016: Illustrative Auditor’s Report on the relevant elements of the Solvency and Financial Condition Report (SFCR) to provide additional and revised illustrative auditor reports in relation to the provision of assurance in relation to the relevant elements of the Solvency and Financial Condition Report (SFCR) of an insurance undertaking subject to Solvency II.    Technical Alert 01/2017 informs auditors that Chartered Accountants Ireland has added two illustrative auditor reports to those published at Appendix 2 of Technical Release 13/2016 Guidance for auditors of insurance undertakings. These additional auditor reports  are relevant for non-life insurance undertakings and have been added as Illustration 1A and Illustration 2A.  Illustration 1 and Illustration 2 at Appendix 2 of Technical Release 13/2016 have also been revised so as to relate to life insurance undertakings only.     The additional and revised illustrative auditor reports have been prepared to take account of paragraph 4 of Section 3 of the Central Bank of Ireland’s Feedback Statement to Consultation Paper CP104 – External Audit of Solvency II Regulatory Returns / Public Disclosures which provides that  “In respect of QRT S19.01.21 (Information on non-life insurance claims in the format of development triangles for the total non-life business), the claims triangles in this QRT includes a 10 year “look back” period. In recognition of the cost and practicalities associated with obtaining a reasonable assurance opinion on a 10 year “look back” period the Central Bank has decided to limit the “look back” period subject to audit in the first year to 2 years (i.e. for undertakings with a 31 December 2016-year end, the period ended 31 December 2014 will be the base reference period and as such will continue to be the first period audited for the purposes of the claims triangles for the following nine years).” Technical Alert 01/2017 presents the following illustrated auditor reports: Illustration 1 (Revised May 2017) – solo entity using the standard formula: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (life insurance undertaking) Illustration 1A (Inserted May 2017) - solo entity using the standard formula: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (non-life insurance undertaking) Illustration 2 (Revised May 2017) - solo entity using the partial or full internal model: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (life insurance undertaking) Illustration 2A (Inserted May 2017) - solo entity using the partial or full internal model: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (non-life insurance undertaking) You can read TA 01/2017 here: Technical Alert 01 2017 auditor reports on SFCR 12 May 2017  

May 12, 2017
Audit

IAASA have published a schedule of changes to the Auditing Framework for Ireland. Click here to access this schedule.

May 09, 2017
Audit

The Financial Reporting Council (FRC) has issued a discussion paper which considers the role of auditors and preliminary announcements of annual results, with a particular focus on the LSE main market. The paper is intended to stimulate an open discussion with stakeholders about the use and value of preliminary announcements in the UK, and the role of the auditor in respect to such announcements. Please click here for further details.  

May 04, 2017
Audit

On 31 January 2017 IAASA adopted the Auditing Framework for Ireland (“the Standards”). Following adoption of the Framework, IAASA engaged with stakeholders and performed a review of the standards. Based on these, a number of changes have been made to the Auditing Framework. A schedule of the changes can be found at this link.

May 04, 2017