The Institute has published the Audit Regulations (incorporating assurance under CSRD) and Guidance, Ireland with effect from 11 October. These regulations replace the existing Audit Regulations for Ireland and introduce the Institute’s regulatory framework for the authorisation and oversight of firms and individuals undertaking sustainability assurance engagements pursuant to Part 28 of the Companies Act 2014 (which reflects the EU’s Corporate Sustainability Reporting Directive (CSRD)).
In Ireland only statutory auditors and statutory audit firms can undertake sustainability assurance engagements. The regulatory regime builds on the existing regulatory regime for statutory auditors and audit firms and this is reflected in the Institute’s revised Audit Regulations (incorporating assurance under CSRD). The Audit Regulations (incorporating assurance under CSRD) provide for the authorisation, quality assurance and regulatory enforcement of firms and individuals carrying out sustainability assurance engagements and sets out the ongoing regulatory obligations of those firms and individuals.
Applications for approval to carry out sustainability assurance engagements
The Institute is accepting applications from Institute firms and responsible individuals (RIs) registered for audit in Ireland for approval to carry out sustainability assurance engagements. Given the urgency of providing authorisation for eligible firms and RIs who have clients reporting under the CSRD in respect of financial year 2024 the Institute will prioritise applications from audit firms and RIs who have clients in this ‘first wave’ of sustainability reporting.
Application forms are available from sasp-applications@charteredaccountants.ie.
The Institute FAQs regarding approval to carry out sustainability assurance engagements provide useful information for potential applicants.
Eligibility for approval to carry out sustainability assurance engagements:
An Irish registered audit firm is eligible for approval to carry out sustainability assurance engagements if the firm has at least one RI who has been approved as a sustainability assurance service provider (SASP).
An individual approved as RI in Ireland before 1 January 2026 can avail of transitional arrangements and therefore is eligible for approval as a SASP if that RI has demonstrated competence in sustainability assurance by undertaking the appropriate relevant CPD. A detailed CPD template is submitted by the RI on application for SASP status. An individual approved as RI in Ireland on or after 1 January 2026 will not be able to avail of those transitional arrangements and will have to undertake a programme of education, including examination, and 8 months of practical training in relevant work.
Background note:
The CRSD was transposed into Irish law in July 2024 by SI 336 of 2024 which amended the Companies Act 2014. New Part 28 of the Companies Act 2014 requires certain companies to prepare sustainability reports disclosing information about the company’s environmental, social and governance (ESG) activities in line with the European Sustainability Reporting Standards (ESRSs). It also requires third party assurance (limited assurance initially) on these ESG disclosures and provides for a regulatory regime for the education, training, authorisation and oversight of sustainability assurance providers. In Ireland only statutory auditors and statutory audit firms can undertake sustainability assurance engagements.
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