Revenue has published a new Tax and Duty Manual Split Year Residence which provides guidance on split year residence. The guidance reflects amendments to the claim rules introduced in Finance Act 2024. The new guide outlines split year treatment, its benefits and the relevant qualifying conditions. The changes introduced by Finance Act 2024 allow individuals to self-assess their eligibility for split year residence and claim the relief in their income tax Return for the relevant year.  These changes are referred to as the ‘Finance Act 2024 scheme (out of year claims)’. The manual provides guidance on claiming relief under this scheme and under ‘The Finance Act 1994 scheme (in-year claims)’. Illustrative examples of both schemes are included in the manual.

The first Practice News webinar of 2025, brought to you by Practice Consulting, took place on Friday 7 February 2025. In attendance were senior representatives from HMRC’s Making Tax Digital (MTD) team, including the MTD Programme Director Craig Ogilvie and Gemma Hope, from the Agent External Readiness team. Attendees heard how agents and taxpayers can prepare for MTD for income tax, including the benefits of joining its testing programme and key readiness tips. A recording of the webinar is available for viewing here. HMRC’s slides are also available on our website. The webinar also contained the usual regular features including updates on both Irish and UK tax, in addition to the latest compliance and technical news from the February 2025 edition of Practice Matters.

Revenue has updated the Tax and Duty Manual which provides guidance on the provisions relating to the residence of individuals. New paragraphs are included which provide additional guidance on: The meaning of ordinary residence and its implications in relation to the charge to tax (paragraph 2), Details on the charge to tax of income from a public office or employment (paragraph 5) and, Double tax agreements (paragraph 7). Certain paragraphs have been removed as the relevant matters are dealt with in separate Tax and Duty Manuals; these include split year residence and PAYE exclusion orders. The appendices in the manual have also been updated to reflect refreshed examples and now include a summary table on the tax implications of an individual’s residence, ordinary residence, and domicile status. A new appendix has also been included to provide historical guidance relating to a concession applying to Covid-19 cases in 2020.

In a story on 13 January 2025, we highlighted planned industrial action by HMRC staff which at that point was expected to end later this week on Friday 14 February 2025. HMRC has recently contacted us to advise that this action, which affects the Employer Helpline and Construction Industry Scheme helplines, has been extended to 14 March 2025. The full email from HMRC reads as follows: “In December we notified you about industrial action affecting the Employer Helpline and Construction Industry Scheme (CIS) helplines. This has been extended to 14 March. We have robust plans in place to ensure we continue delivering critical services.  HMRC Employer Services phonelines and webchat will be open 8am-6pm as usual but customers may experience longer wait times. We recognise that this is inconvenient for customers and agents who need direct support.   The lines affected are:  Employer Helpline (EHL)   Construction Industry Scheme (CIS) Helpline   There are no expected impacts on other services. We will keep the opening hours and service levels under review, and we will update you in advance of any changes.   We are updating GOV.UK and the recorded message that customers hear when calling the helpline. This tells them about the industrial action, the increased wait times and encourages customers to use our digital services. We strongly encourage customers to use our digital services rather than waiting to speak to us on the phone. Some of the main topics customers call these helplines about, which they can do online are: Get a quick answer to queries using the digital assistant  Check the status of your CIS refund in the ‘Where’s My Reply’ tool – only call us if the date has passed   Check your balance in the Business Tax Account   For technical support with online services use the For technical support with online services use the Online Services Helpdesk.”

HMRC has recently updated the Making Tax Digital (MTD) for income tax taxpayer and agent sign up guidance pages to reflect changes to the eligibility criteria for participating in the MTD for income tax trial in 2025/26. Following these changes, taxpayers reporting the high income child benefit charge and/or income from a jointly owned property will be able to sign up voluntarily to join the MTD for Income Tax 2025/26 trial phase ahead of mandation for the first phase of taxpayers with turnover exceeding £50,000 from April 2026. Further updates on the 2025/26 testing phase are expected ahead of its launch which is currently targeted for April 2025.

In this week’s miscellaneous updates, HMRC has confirmed that its interest rates will be reduced after the recent Bank of England base rate reduction and a consultation is taking place on HMRC statistics. From April 2025, the legislation which gives effect to the UK-Russia and UK-Belarus Double Taxation Treaties in UK law will be revoked and HMRC’s Guidelines for Compliance (GfC) have published the latest GfC on labour supply chain assurance. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. HMRC late payment interest rates to be reduced HMRC has confirmed that its interest rates for late payments will be revised and reduced by 0.25 percent following the Bank of England interest rate cut to 4.5 percent. These changes will come into effect on: 17 February 2025 for quarterly instalment payments, and 25 February 2025 for non-quarterly instalments payments. HMRC’s information on the interest rates for payments will be updated shortly. Consultation on changes to HMRC statistics publications On 16 January 2025, HMRC published a consultation seeking views on how the statistics they publish are used. HMRC recognises that it is important to engage with statistical publication users regularly and to consider whether publications remain of high value to them. The aim of the proposals is to ensure that HMRC: continues to produce useful and relevant statistics for use by its stakeholders, adding to its existing statistics where appropriate, and adapts statistics publications to reduce what is produced for those which are no longer widely used, are duplicated elsewhere, or could be produced less frequently. The consultation closes on 10 April 2025. Revocation of UK-Russia/Belarus tax treaties Following Russia’s unlawful action to suspend material provisions of the 1994 UK-Russia Double Taxation Convention and the 2017 UK-Belarus Double Taxation Convention, the UK continued to honour its treaty obligations. The UK requested that Russia come back into compliance with its international legal obligations. However, as it did not do so, the UK has now notified Russia of its intention to suspend the Convention. The UK will therefore revoke the legislation which gives effect to these conventions in UK law. These will both cease to have effect from: 6 April 2025 for Income Tax and Capital Gains Tax, and 1 April 2025 for Corporation Tax. The UK will continue to honour its obligations under the treaties until these dates. However, thereafter, there will be an increased risk of double taxation, with a need to rely on the relief (if any) available under domestic law noting the potential for this to be restricted by ongoing sanctions. The following publications have therefore been updated: Belarus: tax treaties, and Russia: tax treaties. New GfC on labour supply chain assurance HMRC’s GfC team has published Help with labour supply chain assurance — GfC12. The guidelines are designed for larger organisations in the top tiers of a labour supply chain; however, the principles can be applied to most businesses. HMRC continues to tackle tax defaulters in labour supply chains directly. Many risks arise where there are opportunities to exploit larger, higher value, and more complex chains. HMRC is concerned about how these risks can affect a business’s own tax affairs. These guidelines explain how taxpayers can self-assess their own assurance practices and aim to help taxpayers identify and limit the impact of risks. The guidelines: explain what labour supply chains are and the associated risks, promote the importance of effective labour supply chain assurance, and provide practical advice to consider when carrying out labour supply chain assurance. These have been produced using a different format than previous guidelines hence HMRC is keen to hear feedback on the new format. If you have any queries or feedback, please contact the GfC Mailbox. Alternatively, there is an anonymous survey in the Next steps, further questions and feedback section.

Revenue has updated the Tax and Duty Manual Guidance on the Residential Zoned Land Tax (RZLT) to reflect Finance Act 2024. The main changes to the manual reflect amendments to the sections dealing with land subject to the RZLT, administration, exemptions, deferrals and abatements and other issues.

Last week Revenue published statistics relating to 2024 PAYE tax returns filed to date this year on the back of which PAYE taxpayers are being encouraged to use the myAccount service to finalise their tax position. The statistics showed that as at 29 January 2025, over 550,000 PAYE returns had been processed for 2024 which resulted in refunds of over €400 million to PAYE taxpayers. Revenue is reporting a continuing increasing trend in the use of Revenue’s my Account service to file tax returns. An underpayment of tax arose in approximately 12 percent of the returns processed and Revenue has advised that they will engage with the relevant taxpayers to collect the tax due by reducing tax credits over a four-year period. Revenue has reported they estimate a further €389 million of tax may have been overpaid by PAYE taxpayers in 2024. In light of this, Revenue has launched a campaign to encourage PAYE taxpayers to use the myAccount service to finalise their tax position. Revenue has provided details on how to access this service and detailed guidance on submitting a PAYE tax return and claiming tax credits and reliefs.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant to the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Bookings are now open for a HMRC webinar next week on the new arrangements for the movement of parcels and freight between Great Britain and Northern Ireland which commence from 31 March 2025, delayed from 30 September 2024. For more information, click read more. HMRC webinar on new arrangement for parcels and freight The Windsor Framework establishes a new set of arrangements for the movement of goods between Great Britain and Northern Ireland via both parcels and freight. HMRC has organised a free webinar on Monday 24 February 2025 from 2-3pm to help businesses that make parcel movements between Great Britain and Northern Ireland prepare for the new arrangements by 31 March 2025. HMRC is encouraging interested parties to sign up. This webinar follows on from the webinar held on 21 November 2024, which you can view the recording of on the newly launched WF resource page. On the day, the webinar will cover:  What the new parcel arrangements are, The UK Internal Market Scheme (UKIMS) and how to send business to business parcels under UKIMS, Illustrative parcel journeys for consumer and business parcel movements, and A Q&A slot. To register and pre-submit any questions, please click this link. You are also reminded to save the invite to your calendar once registered. Miscellaneous guidance updates and publications Multinational companies and companies based in both GB and NI Economic Operators Registration and Identification (EORI), EORI, Who should register for an EORI number, Place of registration, Finding and checking an EORI, and Location codes for ports of entry in Great Britain.  

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for January 2025 which confirms an Exchequer surplus of €3.6 billion in January. This compares to a surplus of €2.3 billion recorded for January 2024. Tax receipts collected in January were €10.1 billion, which was €2.3 billion ahead of the same period last year. Excluding the once off receipts arising from the judgement of the Court of Justice of the European Union (CJEU) in the Apple State aid case, total receipts of €8.4 billion were collected in January, ahead by €0.6 billion on the same period last year. Income tax receipts of €3.0 billion were recorded in January, €0.1 billion ahead of January 2024. Although January is not generally a significant month for corporation tax, receipts of €1.8 billion were collected in the month which was an increase on January 2024 by just under €1.8 billion, due almost entirely to once-off receipts arising from the CJEU ruling. January is a VAT-due month and generally the strongest VAT month of the year, encompassing the Christmas trading period. Receipts of €4.1 billion were collected in the month, up by 5.8 percent compared to January 2024. Excise duty receipts of €0.5 billion were collected in January, up by €27 million on the same month last year. Commenting on the figures, Minister for Finance, Paschal Donohoe said “Today’s figures show that tax revenues continued to demonstrate steady growth at the start of the year. In particular, the ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy. However, there are clear risks ahead. As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment. This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy. That is why Government has committed to using the once-off proceeds from the CJEU decision to improve our stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges.”

In his book The Closing of the Auditor’s Mind?, David J. O’Regan, FCA, examines how an erosion of trust in modern auditing might be remedied and reversed. Increasingly fragmented patterns of accountability and social trust are in the ascendant and there are implications for a crucial area of our socio-economic existence—internal auditing. Internal auditing faces not only a challenge of adaptability to emerging patterns of accountability and social trust, it is also confronted by broader challenges of reforms required to encourage such adaptability. One might prefer the term “crises” to “challenges” but let us avoid leavening our analysis with hyperbolic language. Nonetheless, the severity of internal auditing’s two contemporaneous and interconnected challenges discussed is not to be underestimated. Should the challenges remain unaddressed, they may well develop into profound crises. Regarding the first challenge of adaptability, internal auditing has failed to keep pace with global trends toward a flattening of traditional, vertical hierarchies of the command-and-control variety, and their replacement with complex patterns of horizontally distributed accountability and social trust. Our trust in traditional institutions and in politicians, business leaders and the cultural elite is eroding. We are increasingly placing trust in non-hierarchical networks, both digital and human. And where trust has been displaced, flows of accountability adapt accordingly. The emergent patterns of accountability and social trust are so far-reaching that they threaten to leave internal auditing marooned, like a shipwreck, in the detritus of history. Internal auditing is therefore at a crossroads, both practical and conceptual. The most demanding needs of accountability and social trust increasingly fall into three domains – in the inner workings of organisations; in transitional spaces at organisational boundaries; and in extra-mural activities. Internal auditing remains fixated on the innards of traditional, bureaucratic structures and is ill-positioned to address the assurance demands arising at both the liminal spaces at the fringes of formal organisational structures and from locations beyond institutional boundaries. The peripheral and external domains are characterised by an absence of clear markers of responsibilities, and by fast, flexible and disorienting flows of accountability that bear little resemblance to the shape of traditional bureaucracy. Their records of accountability are typically digital rather than tangible, and the significance of their assurance demands defies easy evaluation. Importantly for our analysis in this book, we encounter the new patterns of accountability and social trust where the writ of internal auditing, as well as external auditing, runs weakest. The versatility of both internal and external auditing is hampered by restraints. The external auditor’s opinion on an organisation’s annual financial statements once satisfied the assurance needs of traditional hierarchies of accountability and social trust, but it is ill-equipped to meet the demands of the emergent, horizontally distributed accountability paradigm. In contrast to external auditing, internal auditing’s activities are framed in more elastic terms, and internal auditing therefore offers, on paper at least, a greater scope for adaptation. Yet internal auditing, like external auditing, faces an uncertain future, owing to the need for the types of reform without which the necessary agility and adaptation are unlikely to develop. At this point, a word of caution is in order. Even amid the newly emerging patterns of horizontally distributed accountability, bureaucratic organisations characterised by command-and-control structures will continue to exist. A demand for external and internal auditors’ services will therefore remain, as long as stakeholders continue to be interested in financial statements and in the inner workings of organisations. But the real action on accountability and social trust will increasingly be found elsewhere on the fringes of organisations and in extra-mural locations. Already, assurance is becoming increasingly piecemeal. We can expect the emergence, in the near future, of innovative, diffuse assurance mechanisms to address the pressing demands of the new patterns of accountability and social trust. Both external and internal auditing therefore face a future of marginalisation as they remain shackled to the outdated frameworks of bureaucratic institutions. Internal auditing faces not only a challenge of adaptability. It also contends with a second challenge arising from its increasing tendency toward algorithmic and mechanistic activities. In particular, the dangers arising from a swelling tide of amoral and pedantic literalism in internal auditing are difficult to overstate. A humane approach to internal auditing founded on creativity, individual judgment, and critical thinking. In this context, there is a sense of loss that seems an inevitable accompaniment to progress. Or, perhaps more accurately, an accompaniment to misplaced notions of progress. Internal auditors today have at their disposal vast pools of data, along with powerful technological tools that mine and arrange the data into auditable information. Technological advances encourage internal auditors to approach well-worn topics in fresh ways and to explore newfangled activities. Only a Luddite would be hostile to technological advances in internal auditing, from data analytics to the use of drones for the purposes of aerial surveillance of dispersed inventory. But internal auditing’s technological achievements have come at a high cost – as an addictive substitute for critical thinking. Internal auditors are increasingly gripped by an algorithmic mindset, and they tend to look at technology, not as a means to an end, but as an end in itself. This technologically driven approach has crowded out arduously gained humane aspects of internal auditing. The relentless, metallic clatter of technological advance does not therefore necessarily imply improvements in understandings of underlying concepts. Our collective faith in data analytics and sampling software has created the seductive but dangerous myth that we are better auditors than our predecessors. We seem unaware that accretions of prowess in data handling and number-crunching often offer little more than illusions of certainty, if not groundless uncertainties. The technology of internal auditing may progress, but the cogency of the concepts and principles of internal auditing remain enduring. Diagnostic acumen, analytical rigor, inferential precision, a healthy scepticism, and a resistance to transient faddism are unchanging prerequisites for good internal auditing, and our progressive internal auditing environment now needs them more than ever. Modern internal auditing does not lack energy. However misplaced, its enthusiasm is in constant motion, exuding an exaggerated sense of industriousness. But the blustering, frenetic pace of internal auditing today masks an underlying intellectual inertia, a kind of hallucinatory lassitude in which highly agitated activity serves only to endow clockwork routines with decreasing significance. Beneath whirlwinds of risk assessments, data analytics, and trending buzzwords, and beyond the dubious recommendations that often flow from such mechanisms, we see process increasingly triumphant over substance. It is at internal auditing’s eerily muted core where the absence of timeless concepts of validity and truth are most keenly felt. A technocratic conformity is descending on internal auditing like a smothering shroud, leaving us with muffled reverberations of futile routines, hollow platitudes, and a steady decline in the public’s trust. Only a fundamental overhaul of internal auditing’s self-understanding and methodologies, driven by a tempering of its algorithmic mindset, will open the door to a return to a style of auditing marked by creativity and judgment. Without such an overhaul, internal auditing is unlikely to survive a take-over by automated auditing software and machine-processed artificial intelligence, let alone adapt to the evolving paradigm of accountability and social trust. About the author David J. O’Regan has authored nine books on auditing and related themes. A Fellow of the Institute of Chartered Accountants in England and Wales, he earned a doctorate in accounting and finance from the University of Liverpool and his auditing experience spans more than three decades, in the private, public and academic sectors. O’Regan joined the United Nations system in 2005, working initially at the Organisation for the Prohibition of Chemical Weapons at The Hague in the Netherlands. He has served as Auditor General to the Pan American Health Organization in Washington D.C. since 2009. For more, see davidoregan.com.

The Statement on Internal Control is critical to the effective risk management and governance of Ireland’s State bodies. Tom Ward and Níall Fitzgerald offer their best practice insights Recent challenges faced by Irish entities in the public, non-profit and private sector have emphasised for many boards (and, where relevant, their funding bodies) the critical importance of the adequacy and operational effectiveness of internal controls, risk management and governance. Ultimately, a systematic and proactive approach to testing and reviewing controls, addressing weaknesses and implementing remedial actions in a timely manner, can only enhance confidence in public sector governance and best practice. In this regard, the Statement on Internal Control (SIC) plays a crucial role. State bodies in Ireland are required to report on all of their internal controls, risk management and governance in their annual SIC in accordance with the Irish Code of Practice for the Governance of State Bodies 2016 (Code of Practice).  Such reporting encompasses financial, business, operational and compliance controls and State bodies are subject to a swathe of such controls as standard, spanning: The discharge of public business. Project delivery and cost management. Monitoring and control of assets. Fraud prevention and detection. IT systems and technology (including cybersecurity).  Procurement. Additional controls specific to the nature of each bodies’ activities include clinical governance for public hospitals, infrastructure guidelines for large infrastructural projects and controls relating to onward funding to other public bodies or non-profits. The SIC must acknowledge the Board’s responsibility for ensuring that effective internal control systems are in place, the approach taken to reviewing these systems to ensure they are working (including steps taken by the Board and its Committees) and must identify any significant weaknesses or breaches. While the format for the SIC is prescribed, the content should be tailored according to the size and complexity of the organisation. However, there is limited guidance on the extent to which the Board should tailor this approach and content. At a recent SIC event co-hosted by Chartered Accountants Ireland and the Institute of Public Administration’s Governance Forum, Andy Harkness, from the Comptroller and Auditor General (C&AG) Office, provided examples of SIC best practice for State bodies, including the need for:  Good documentation clearly explaining the work carried out to support the review of controls; Assurance statements provided by senior managers; The involvement of the internal audit team, including key changes arising from their reviews and recommendations; and  If appropriate, an assurance statement from  independent assurance service providers.  Within this approach, the C&AG highlighted the importance of documenting any issues that may arise and adequately supporting any work undertaken to ensure that significant risks have been identified, including risks arising from changes to the control environment. Also emphasised was the importance of assessing the effectiveness of the controls in place, the assurance results and the effectiveness of follow-up steps taken in response to any control deficiencies identified.  Board and board committees should minute their review and conclusions with regard to the effectiveness of the systems of internal controls under review, and record recommended changes to governance, internal controls and risk management matters arising from the review. Also speaking at the recent SIC event, several experienced non-executive directors provided examples of the approaches they have taken to preparing the SIC within their organisation. In particular, they noted challenges associated with the absence of formal guidance and the ambiguity surrounding the term “operating effectiveness”, which is typically associated with Sarbanes–Oxley applying to companies listed on the US Stock Exchange.  In an Anglo-Irish context, assurance on the effectiveness of controls has traditionally been limited to financial and reporting controls. This is, however, changing. To achieve best practice in SIC reporting, the Boards of State bodies in Ireland may currently rely on: Guidance issued by the Financial Reporting Council (FRC) in Britain in relation to the UK Corporate Governance; International Standards on Assurance Engagements (ISAE) 3402 Reports; Sarbanes–Oxley literature for directors and auditors;  Guidance or circulars issued by the Department of Public Expenditure, Infrastructure, Public Services, Reform and Digitalisation or the C&AG; and General assurance standards and guidance. Some best practice insights for State boards arising from the recent SIC event include: The benefit in defining, adopting and communicating a common framework for performing the review of internal controls. The importance of the work needed to support and underpin the SIC. The need to ensure that the findings reported in the SIC are consistent with other supporting documentation approved and minuted by the Board. The need to disclose any scope limitations encountered in the processes necessary to support the SIC and to consider their impact on the directors’ assertion on compliance with the Code and SIC requirements. Above all, the importance of understanding that the reporting of significant weakness is just one part of the equation—this must be accompanied by reporting on the steps since taken (or to be taken) to address these weaknesses. The focus on robust internal controls, comprehensive risk management and effective governance remains a critical requirement for State bodies.  The SIC is not just a compliance requirement; it also serves as a reflection of the organisation’s commitment to transparency, accountability and continuous improvement.  As State bodies navigate evolving challenges and expectations, adopting a standardised yet adaptable framework, combined with clear guidance, will strengthen overall SIC governance practice.    Dr Tom Ward is Senior Governance Specialist, Professional Development, with the Institute of Public Administration Níall Fitzgerald, FCA, is Head of Ethics and Governance at Chartered Accountants Ireland

Colette Devey, Risk Consulting Partner, Chief Risk Officer and Consumer Sector Lead with EY Ireland, talks us through her impressive career path and some of the important lessons she has learned along the way. Colette Devey was appointed Chief Risk Officer at EY Ireland in September 2024. Devey also leads EY Ireland’s Consumer Products and Retail Practice and is a Partner in the firm’s Risk Consulting Business. She joined EY in 2003 and became a Partner in 2019. Tell us a bit about yourself and why you decided to become a Chartered Accountant? I grew up in Raheny in Dublin and attended Manor House School before moving on to University College Dublin. I chose a degree in business and legal studies because I felt it would offer promising career options in both the legal and finance fields. Initially, I thought I would become a lawyer, but over the course of my four-year degree, I realised my strengths lay in business and finance. This realisation led me to choose a career in finance, joining the assurance practice of a big four firm in London to train as a Chartered Accountant and working with clients in the financial services sector. How has your career evolved from qualification through to your current role with EY Ireland? After qualifying, I spent two more years in London, building my experience and learning to manage client engagements. It was an exciting time to be in the city and I was very lucky to have college friends who moved over at the same time. There was a great Irish gang of us all together. The work environment in which I began my career was very different to today. My work was 100 percent client- or office-based with much less technology and it was still quite male-dominated. The firm had just two female partners at the time and, in many of the teams I worked on, I was the only woman. After five years in London, I was ready for a change and moved to Sydney, Australia, for two years. It was there I first had the opportunity to work as a consultant, rather than an auditor, and I immediately knew this was the area I wanted to progress my career in. As a Risk Consultant, I discovered I enjoyed the operational aspects of businesses, from the shop floor or factory site through to profit and loss and the balance sheet. This role allowed me to leverage my core accounting skills while also gaining deep knowledge in process, risk and controls, and I have since continued to build my career in this specialism. I joined EY Ireland in Dublin in 2003, then spent 15 years in consulting with EY UK. After returning to Dublin in 2022, I took up the position of EY Ireland Consulting Partner and Consumer Sector Lead. In this role, I work extensively with local and international businesses in the agricultural, consumer products and retail sectors, helping them navigate a rapidly changing landscape driven by evolving consumer behaviour, regulatory changes and emerging technologies, such as artificial intelligence (AI). I also lead our work on the Irish EY Future Consumer Index, which tracks changing consumer sentiment and behaviours bi-annually, identifying new trends and emerging segments. Talk us through your day-to-day work as Chief Risk Officer with EY Ireland. My role as Chief Risk Officer is very broad and complements my continued service to clients across our 150-strong Risk Consulting team here in Ireland. My team and I focus on ensuring EY Ireland manages and mitigates a number of key risks. This can range from data privacy and protection—where we work closely with colleagues on our legal team to assess the data risks arising from the introduction of new technology, notably AI—through to assessing the implications of external events. This might be social or, as in more recent months, weather-related. On top of day-to-day matters, there are also times when we have to react quickly to protect the firm, our people and our clients—from cyber risks, in particular. As an example, when the CrowdStrike software update caused significant outages globally, we had to immediately consider what impact this might have on our clients. Thankfully, in this instance, the impact was minimal. What do you enjoy most about your current role, and what are the challenges? What I enjoy most is the variety and this has continued to be the case over the course of my entire career to date. No two days are the same. My team and I need to be very agile so that we can quickly reprioritise activities and plans based on changing circumstances. This also brings challenges, such as tight deadlines or the need for fast decision-making. In my experience, however, these challenges are easily overcome when there is a strong and aligned team working together and communicating effectively. This is something I am very grateful to have with my current team. Are you glad you made the decision to qualify as a Chartered Accountant at the start of your career? Yes, without a doubt. My qualification as a Chartered Accountant has opened many doors and opportunities for me throughout my career. It has been foundational to the work I do with my clients, whether that is delivering internal audit services, transforming governance, risk and internal control frameworks, or supporting the implementation of Sarbanes-Oxley Act (SOX) requirements, mandating strict reforms to improve financial disclosures and prevent accounting fraud. Although much of this work focuses on strategic, operational and compliance risks, we are never too far away from considering the financial impact on the business. Did you have a career plan starting out? How have your career goals evolved in the years since? If I am completely honest, no, I didn’t set out with a long-term career plan. I knew I wanted to become a Chartered Accountant and work for organisations offering opportunities for career progression, alongside enriching professional and personal experiences. I didn’t set out with the end in mind and could not have imagined some of the opportunities I have had along the way, including working with incredible clients, fantastic teams and on exciting projects while also being able to live and travel all over the world. In the early part of my career, my approach was to say ‘yes’ to every opportunity that came along. In more recent years—and particularly since I set myself the goal of becoming a Partner—my goal setting has become more deliberate and focused. I want to keep growing and developing my professional experience and expertise, while also creating opportunities and experiences for my team and colleagues. Tell us about the most important professional lessons you have learned in your career. The three most important professional career lessons I have learned over the years are: Be the role model for others you would have wanted for yourself. Listen to those around you and take their feedback on board—but, ultimately, you have to trust and believe in yourself. Most importantly, never forget that clients are individuals with their own aspirations and plans. Developing strong relationships at a personal level, as well as professionally, typically leads to healthy, trust-based and long-term client relationships. How has the role of the Chartered Accountant evolved since you first joined the profession, and how do you think it will change in the years ahead? The biggest change I have observed in our profession relates to technology and how it continues to impact the work we do. First, there is the role technology plays in business, creating risk, but also opportunity. Second, technology is now key to delivering accounting, auditing and consulting services. When I first started with a big four firm in London, we didn’t even have individual laptops. Instead, each engagement team had just one Mac computer, which came with its own wheely bag. The most junior person on the team (i.e. me) had to bring it to and from the office and client sites! Times have changed so much since then, and I believe technology—in particular, data—will continue to play a critical role in our profession’s future development as emerging technologies, including AI, become even more prominent in business, accounting, risk consulting and wider society. What advice would you offer young Chartered Accountants about forging a successful and fulfilling career? My advice would be to take the time to truly understand your strengths, consider where and how you want to grow and develop professionally, and identify the roles that will give you energy and motivation while also allowing you to be your authentic self. With these strands in place and the Chartered Accountancy qualification behind you, you will be in a strong position to grasp opportunities for a rewarding and enriching career. What are your career plans from here on in? That is a very good question! With EY’s new global leader, Janet Truncale, and our ‘All In’ global strategy in place, there are many exciting developments ahead. For now, my focus is on my clients, growing our business and developing the teams I work with, as well as ensuring we manage and mitigate the risks we face as a firm. These responsibilities are more than enough to keep me busy for the time being, but I am always open to new experiences and opportunities, so I will keep an open mind as to where my career will take me in the future—as everyone reading this should.

Resilire founder Joyce McCarthy, FCA, is helping scaling organisations embed a sustainable growth culture that supports people and boosts resilience “Recalibrate. Resolve. Rise.” When Joyce McCarthy launched her HR advisory and coaching firm Resilire in September 2024, she knew exactly where her focus needed to be. Inspired by her own experience re-evaluating her career and life priorities in response to events beyond her control, McCarthy resolved to use this very personal insight to help others prepare for, overcome and learn from professional challenges and setbacks. “Resilire comes from the Latin word for ‘resilient’. When I decided I wanted to set up my own business and work for myself, there was never any doubt about what my focus would be; I knew it had to be about helping people to embrace change and build resilience to achieve their goals.” McCarthy had begun her own career training in Dublin as a Chartered Accountant before moving into banking, first in Australia and then the UK, where her career focus shifted first to sales and then to people and performance management, and organisational culture. “When I moved to London, I started a new job at a large organisation managing a big team and leading innovation in people management,” McCarthy says. “We were overseeing all aspects of performance management from metrics to bonuses, rewards and recognition schemes, and really focusing on how to innovate and improve this whole area. “That was when I started to think seriously about what the culture of an organisation really means, and the level of stress individuals can experience when they are under pressure to perform.” McCarthy “absolutely loved” her work and was delighted when she was promoted to director level and selected for fast-track progression through the organisation’s senior ranks. “Then, I got pregnant. I had just started my new role and I didn’t want to have to go on maternity leave, but I remember the doctor saying to me, ‘You need to prioritise your health and your pregnancy now,’ and that was a shock to me at the time.” McCarthy endured a difficult birth and serious complications with the arrival of her first child. “I was recovering when I was told my employer was carrying out a cost-cutting exercise and essentially downsizing,” she says. “I felt I needed to rush back to work early from maternity leave to try to claim a chair, but, essentially, the music stopped and I had nowhere to sit.” Losing her job in this way was a shock for McCarthy. “My whole world was completely rocked,” she says. “I had gone back to work before I had physically or emotionally recovered. I already felt vulnerable and then I was told my job was at risk of being made redundant. “At the time, I felt really let down by my employer and that’s when I started to think, ‘I need to be my own boss and never again depend on an employer’. The experience also opened McCarthy’s eyes to the very human cost of high-pressure work environments built solely to service the bottom line. “It gave me a lot of empathy for other people and their circumstances. I went from being really focused on performance, productivity, output and just working really, really hard, to questioning everything and asking myself, ‘am I going too fast here?’ “I was a first-time parent and really unwell for the first time in my life. I had to stop and think, ‘There’s more to life than work; your health and the health of your family is so much more important’.” McCarthy subsequently decided to complete a diploma course in resilience coaching and left London in 2021 to return to Dublin with her husband and young family. She established Resilire six months ago, specialising in talent and performance management strategy alongside executive coaching. “My focus is on supporting scaling businesses to reach their potential by helping them with people and culture goals,” McCarthy says. “This is especially important to me because Ireland is just such an entrepreneurial, relationship-focused country.  “When I came back home, I started building a network of wonderful, supportive entrepreneurial people almost straight away.  “These entrepreneurs and others like them build amazing businesses, but when these businesses reach a certain size, they are going to need to define their own identity from a people perspective, and that’s where I come in.” Culture is key to resilience in any organisation, McCarthy says, and embedding a culture of   psychological safety and trust is paramount in a growing company. “Blame culture really doesn’t support business performance,” she says. “The focus should always be the end goal. As long as you’re focused on that bigger goal, you can absorb and withstand the little mistakes that happen along the way, the things that go wrong and the unexpected events and setbacks. “Ultimately, people need to know that they can be open and honest; that it is safe to raise issues; and that the people around them have their back. “Embedding a ‘test and learn’ environment that encourages people to fail fast with no repercussions actually encourages innovation and boosts performance.” In tandem, it is important for employers to understand that their people are multi-faceted humans with full lives outside work, who are often contending with a whole plethora of competing and shifting demands. “People are not bots; they’re not widgets. They don’t just show up to work to perform a task. Typically, people have a lot more going on in their lives than work, and their resilience can be depleted over time by a whole range of factors, be they family-, health- or money-related. “That is why, I think rightly, we are seeing the people management focus shift towards wellbeing as a holistic concept. “At the end of the day, people want to be seen and supported at work; to feel that they can share their challenges in a safe environment; and to be recognised for their contribution and all the ‘small wins’ along the way. “This is what performance management is really about, I think, and helping companies build a culture that genuinely supports it is my core focus with Resilire.”  

Seamus Parle is leading the way at Rotary Ireland in his role as District Governor of the international organisation on Irish soil, writes Barry McCall. The move to semi-retirement in 2023 allowed Wicklow-based Seamus Parle to devote more time to his voluntary work with Rotary Ireland, ultimately taking on the role of District Governor of the all-island organisation in July 2024. For Parle, the role marks an important milestone in his professional endeavours, allowing him to apply skills learned over the course of a successful career for the betterment of society. “Rotary is dedicated to serving communities both here and abroad, and through its voluntary work, provides an excellent platform for people to develop socially and professionally,” he explains. “Rotary members are people with a social conscience who want to put their skills and expertise into the service of the community. “Whether it’s supporting a health or education project here in Ireland, providing housing for families in Ukraine or funding a water pump project in rural Kenya, Rotary has no shortage of projects for people to become involved in.” Professional career Parle’s professional career began in 1975 with Bank of Ireland. “There weren’t many jobs around at the time. When I left the bank four years later, people said I needed my head examined. But I was studying accountancy at the time, and it was difficult to get to classes in Dublin from Baltinglass, Co. Wicklow, where I was working,” he says. From Bank of Ireland, Parle moved to engineering company TMG Group as an Assistant Accountant. “It was in Wexford and even further away from my classes,” he recalls, “But I got practical hands-on experience of doing accounts and I then moved to Waterford Iron Foundry.” His next move saw him take up a role with Ballyfree Farms in Wicklow. “I qualified as a Management Accountant (CIMA) while I was there. The company was taken over a number of times, most recently by Kerry Group. If I wanted to progress my career, I had to be prepared to move to Tralee or even further afield. Our first child was on the way and that wasn’t for me.” This led to Parle’s move into practice. “I went to work for my friend Cathal Cooney at his practice. The plan was to stay for a year while looking for another role in industry. I was still there 33 years later—I never escaped,” he jokes. “After industry, I found the diversity of practice work very enjoyable. You are involved in totally different assignments from one day to the next. In industry, it’s pretty much the same every day. “After a few years, I realised I wouldn’t be able to sign audit reports as a Management Accountant, so I did the CPA exams to become a Certified Public Accountant. In 2023, we merged with a larger firm which allowed me to retire from the practice.” Parle’s involvement with Rotary dates back to his taking over from Cathal Cooney as Managing Partner of Cooney Parle & Co. Accountants (now GBW Cooney Parle & Co. Accountants) in 2012. “Cathal had always looked after business development while I stayed in the office. I had to step into his role and decided to do some networking, so I joined Rotary,” he explains. Parle became Wicklow Club President in 2014 and Assistant Governor with responsibility for eight clubs in 2016. “I became District Treasurer with responsibility for finance for Ireland in 2018 and, on 1 July 2024, became District Governor for the Rotary organisation on the island of Ireland for a one-year term.” Rotary history and development Rotary Ireland has 1,450 members while the international organisation has 1.2 million members at 35,000 clubs in over 200 countries worldwide. “Rotary was founded in 1905 as a business networking group by four people in Chicago,” Parle explains. “They decided that if each of them recommended each other to their contacts, all the businesses would grow as a result. If you want to recommend someone, you need to know that they will do a good job, so you need to know them quite well. “They met weekly in each other’s offices on a rotational basis, hence the name. The businesses prospered and after a few years, they decided to give back a proportion of those gains to the community.” The first beneficiary was the community in a town outside Chicago. The nearest doctor’s horse had died, depriving the town of access to the doctor. The Chicago Rotary Club solved the problem by buying a new horse for the doctor. The second project was the construction of a new public convenience in the city of Chicago. “Such facilities were quite novel at the time,” Parle says. The Irish connection goes back a long way. “The first Rotary Club outside North America was in Dublin. The ‘Dublin Number 1’ club was founded in 1911 and is still meeting today. That’s the origin story.” Rotary was founded for business and social networking and to provide an opportunity for people to perform community service and for their own self development in areas like project management, teamwork and leadership, Parle explains. “Involvement teaches members about work and life and gives them a different perspective on things. Members also have access to all 35,000 clubs around the world. I was in Brazil recently and had the privilege of visiting the Rotary Club of Copacabana.” Rotary club members are drawn from all walks of life, and each brings something to the table. Accountants can be particularly valuable, Parle points out. “Every club needs a Treasurer. In Rotary, you are dealing with other people’s money, whether that’s the members’ money or money raised through charity fundraising. Accountants have high ethical standards, are skilled at making the most effective use of scarce resources and are seen as a safe pair of hands.” Irish Rotary Club projects Irish Rotary Clubs have been involved in a range of projects in recent years. These include the annual Trees of Remembrance, a Christmas initiative hosted in many shopping centres around the country. “Just over half the clubs in Ireland are involved in that. People can write a note to remember a loved one who has passed on or is ill and can make a donation which usually goes to an end-of-life charity,” Parle explains. Another initiative has seen Rotary Clubs tackle waste at the same time as providing bicycles to schoolchildren in Africa. “A number of years ago, we got €250,000 from the Government’s anti-dumping initiative. We used that to put containers in recycling centres to allow people to dump unwanted bikes,” Parle says. “We bring them to Loughan House and Shelton Abbey open prisons for refurbishment where the prisoners acquire skills in bike maintenance. The bicycles are shipped to Gambia where students might live a two- or three-hour walk from their school. Having a bicycle leads to better educational outcomes for them.” Other projects involve road safety advisory sessions for transition year students in Ireland and the provision of microcredits to people starting businesses in the developing world. Parle also mentions a former winner of Rotary’s Youth Leadership Development Competition—Rotary honorary life member, former Taoiseach and current Tánaiste Simon Harris. “Simon learned a lot through his involvement in Rotary and it shows the benefits of becoming involved at a young age regardless of whichever party you support or are a member of,” he says. New members are always welcome. “New members from different backgrounds, with different perspectives, all are welcome, and we would really like to see more young people, particularly women, joining,” Parle says. “In Ireland, we have clubs throughout the country. People interested in joining can contact their Rotary Club through Rotary.ie. We have people waiting to respond to membership enquiries. They are all volunteers, we have no paid staff, no offices and no admin costs as such. “Through Rotary, I’ve learned so much and met so many wonderful people from all over the island of Ireland and beyond. Quite simply, joining Rotary was the best decision I made this century.”

Cormac Lucey examines recent election turmoil in Romania, questioning the fragility of democratic processes and need for greater scrutiny in safeguarding electoral integrity We pride ourselves that our modern societies are democracies, but what if this is a comforting illusion? What if the foundations of our democracies are considerably more fragile than we imagine? Some recent developments suggest that caution is warranted. Last November, Romania held its first round of presidential elections. As nobody secured an overall majority, the second run-off round was due to be held on 8 December.  On 6 December, however, the Romanian Constitutional Court annulled the election, alleging Russian interference in the first-round outcome, which had been won by Calin Georgescu, a “Romanian far-right politician, agronomist and prominent conspiracy theorist, who worked in the field of sustainable development”, according to Wikipedia. Four days earlier, on 2 December, the Court had confirmed the first round results despite vote-rigging allegations.  It appears that intelligence agency reports alleging that TikTok had been used to spread political disinformation caused the Romanian Constitutional Court to change its mind. The election is now scheduled to be re-run in May, six months after the original, aborted election.  There are at least four concerns I have with this chain of events.  First, elections have always been battlegrounds of contention. One should not be able to cancel a democratic election without hard evidence of sustained manipulation. Is the assertion that untruths were told on TikTok now sufficient to overturn the election results of a democracy?  Second, the intelligence types asserting that social media fatally undermined the recent Romanian election are the same sort of people who claimed, in the run-up to the 2020 US election, that the disclosure of Hunter Biden’s emails had “all the classic earmarks of a Russian information operation”. We now know that those emails (suggesting criminal behaviour by members of the Biden family) were true.  Those intelligence operatives who untruthfully dismissed the emails in 2020 were granted a pre-emptive Presidential Pardon by Joe Biden as he departed the White House.  Third, if democracy is as important as we are regularly told it is, why is Romania delaying the re-run of its cancelled November 2024 election until May 2025?  Fourth, while the mass media in Britain and Ireland cover in astonishing detail every twist and turn in American politics, there has been almost total silence regarding the cancellation of the results of a modern European democracy on pretty flimsy grounds.  It brings to mind the warning issued by Alexander Solzhenitsyn—the Russian dissident, Nobel laureate in literature and author of “The First Circle” and “The Gulag Archipelago”—shortly after he first arrived in the Western world in 1978 having been let out of the Soviet Union. Solzhenitsyn said: “The Western world has lost its civic courage…Such a decline in courage is particularly noticeable among the ruling and intellectual elite, causing an impression of a loss of courage by the entire society.” The UK’s 2016 vote to exit the European Union and last year’s vote for Trump to reprise his role as US President were as much votes of no confidence in those countries’ ruling political establishments, as they were votes in favour of the outcome.   There is a danger, in an ever more atomised world, that we—part of the ruling and intellectual elite—take democracy for granted, assume that everyone else is doing their job properly and fail to do our bit to sustain the system.  As Chartered Accountants, we are highly trained guardians and interpreters of fact at a time when the facts are increasingly in dispute. Maybe it’s time for us to speak a little louder in public debate.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the February/March 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees or the editor. 

In early 2025, before Donald Trump had even stepped foot inside the White House to begin his second time as US President, corporate America rushed to back out of diversity, equity and inclusion (DEI) promises made to consumers in 2016. Three members give us their take on the potential impact on DEI policies in the wider working world. John McNamara Executive Director and CFO, AIB life There has never been a more exciting time to be interested in diversity, equity and inclusion (DEI). “Too woke! Too preachy! More masculine energy! Shut it down!” Regardless of the invective linked to its unexpected politicisation, what seemed to be an unquestioned progression in DEI awareness and acceptance has now been seriously disrupted. How we react will determine its evolution, and indeed existence, in the years ahead. “Never waste a crisis” is the truism, and this period of transition offers businesses the opportunity to double down, tread water or cease their DEI activities. At its core, DEI aims to tackle important issues, such as workplace gender equality and discrimination based on sexuality and racial biases, while also raising awareness of age, ability and access in a safe environment. Within organisations, this effort is supported by a culture that is visibly led from the top and engages those affected, along with their allies. Diverse teams produce better products resulting in higher profits, the latter being ironic in the context of much of the current US narrative. What DEI isn’t is tokenism. It isn’t about marking certain days of the year, while ignoring what they represent the rest of the time—participating in a Pride parade annually, for example, without putting in place supportive policies for LGBT+ people. The responsibility for DEI often gets passed to HR, where it withers away, remaining separate from the rest of the organisation. Lanyards and name badges are produced only to be tossed in (virtual) drawers, often in the absence of management leading by example. So, if all of that ceases now, then frankly, no loss. However, those businesses that stay the course have a valuable opportunity to reflect on how DEI sits within—and is communicated across—their organisation. In the short term, check in with your team to find out how they are feeling about current events, and to understand if they feel unsettled. Even small gestures build trust and inclusion. Less emphasis on targets, quotas, enforcement or policies may also be welcome—and more on ensuring that workplaces better represent the full diversity of the communities they employ, engage with and serve. The pendulum will swing again. Those businesses that re-commit to DEI now when challenged will arguably be more invested than ever before—and that’s a good thing. Sandra Quinn, Founder and CEO Quinn & Associates, Executive Search Partners For over 15 years as a recruiter and the previous 10 as a Chartered Accountant, I have seen how work shapes careers, identities and aspirations. Where we spend our nine-to-five matters. It influences our sense of purpose, opportunity and belonging. I have always been guided by two principles: A lesson from my father: “Love is an understanding of one another”; and A simple truth I share with my children: “If we were all the same, the world would be very boring.” These ideas highlight the value of difference, not just in theory but in the strengths diverse perspectives bring to the workplace. DEI initiatives have played a key role in fostering more inclusive environments. They have broadened access to opportunity, challenged outdated biases and helped organisations recognise talent in all its forms. Neurodiverse individuals, for example, bring fresh thinking and problem-solving skills yet, too often, face barriers unrelated to ability. Similarly, many disabled professionals are not limited by their own capabilities but by workplaces that fail to accommodate them. The real challenge is not whether people can contribute but whether workplaces create the conditions for them to do so. As some organisations scale back DEI efforts, an important question arises: what comes next? True inclusivity should not depend on a policy. It should be embedded in how we lead, hire and collaborate. Fairness, respect and opportunity must be more than corporate buzzwords. They should define workplace culture. Sustaining progress requires more than policies. It demands emotional intelligence, empathy and a willingness to challenge bias. The success of DEI will not be measured by whether programmes persist, but by whether their impact endures. Understanding and celebrating difference is not just the right thing to do; it is what makes workplaces stronger, teams more innovative and organisations more successful. Mark Fenton, CEO & Founder, MASF Consulting Ltd For years, diversity, equity and inclusion (DEI) practice has shaped workplaces globally and enhanced performance by embracing diverse contributions and driving innovative decision-making. Recently, however, we have seen some high-profile corporations and educational institutions begin to dismantle their DEI initiatives. DEI is seen by some as non-essential, with initiatives viewed as a zero-sum game or unhelpful political correctness. So, are DEI programmes still important? The answer is yes. DEI programs are not just about fairness; they drive business success. Research consistently shows that diverse teams are more innovative, perform better financially and make better decisions. Inclusive workplaces lead to higher employee engagement, retention and job satisfaction. While Meta, Google and Amazon’s about-face on DEI has grabbed the headlines, there are many more organisations (Apple, Coca-Cola and Citigroup, for example) that have come out in favour of DEI and reaffirmed their strategic intent. Indeed, at the recent Davos summit, the CEOs of both JP Morgan Chase and Cisco delivered strongly supportive statements on the impact of DEI. Nonetheless, the DEI ‘industry’ is partly to blame for the current backlash in that some of the language it uses is viewed (ironically) as exclusionary, and some initiatives as favouring certain groups over others. This can hamstring diverse viewpoints, prioritising identity factors over merit and muddying the link between diverse perspectives and innovation and performance. Leaders need to: Engage the audience: Simplify the message of what DEI means for each individual and release the constraint of ‘mandatory training’. Refine, not reduce: Review language used and mitigate negative perceptions of DEI supporting unfair quotas and/or unwanted activism—do not, however, reduce efforts and continue to maintain progressive company values. Link to business: Ensure measurable outcomes and better integration into corporate strategies. Our world is evolving and the need for inclusive and equitable workplaces remains. Organisations that stay committed to DEI will not only gain a competitive edge in an increasingly diverse and dynamic marketplace but will also benefit society as a whole.

At a time of unceasing change and disruption, internal auditors are under more pressure than ever before to get ahead of potential risks. Colm Laird outlines some of their most pressing priorities for 2025 Internal auditors must remain agile and responsive to change as their organisations contend with fast-evolving challenges.  Having endured unprecedent levels of uncertainty and disruption in recent years, many organisations continue to face threats and challenges posed by prevailing economic and geopolitical conditions, changing stakeholder outlooks, stringent regulatory requirements and heightened digitisation.  Outlined here are some of the key thematic areas and related risks internal auditors should consider in 2025 when assessing their organisation’s risk profile and control environment. Economic and geopolitical uncertainty Despite years of economic and geopolitical instability, global economic growth remained resilient in 2024, with further recovery expected this year. The geopolitical landscape remains unstable, however, with escalating conflicts, trade tensions and political transitions all posing potential risk.  Inflation is falling, leading to lower interest rates in the European Union, Britain and the US, as evidenced by the three rate cuts introduced by the European Central Bank in 2024.  Despite this trend, some sectors remain cautious due to ongoing uncertainties and potential supply chain disruptions.  Organisations should prioritise implementing long-term strategies to navigate these challenges and manage associated risks.  Internal auditors should assess how the first and second lines of defence can effectively mitigate increased risks and impacts, focusing on long-term strategies, third-party supplier vulnerabilities and capital planning and management procedures.  Operational resilience Mounting global interdependency, technology-led transformation and recent service outages all point to increased potential for organisational disruption.  Alongside economic, geopolitical and environmental instability, this trend highlights the need for organisations to: Manage operational risk. Plan for contingencies.  Maintain up-to-date business continuity, disaster recovery and cyber response plans.  Having taken effect in January 2025, the EU’s Digital Operational Resilience Act (DORA) applies to financial entities and their third-party information and communication technology (ICT) providers.  Published by the EU Commission, DORA creates a comprehensive framework designed to help financial firms endure ICT-related disruptions and remain operational.  To support this, internal auditors should assess the effectiveness of operational resilience and crisis management protocols, ensuring key threats are addressed and response plans are adequate.  They should also review business continuity measures to ensure emerging risks are considered.  Third-party relations and supply chain Supply chain risks have been heightened by the fragmented geopolitical landscape dominated by ongoing conflicts in Ukraine and the Middle East, protectionism, policy interventions and shifting consumer expectations.  These factors influence organisations’ supply chain strategies and investments, increasing complexity and cost. Here, the robust risk management of outsourced relationships and supplier diversification is critical.  Organisations must also enhance transparency, ethics and environmental, social and governance (ESG) implications in their supply chains, carrying out risk assessments and due diligence of third parties.  Additionally, automation of supply chains using artificial intelligence (AI), blockchain and machine learning is increasing.  Internal audit must, therefore, assess the maturity and resilience of supply chains and advise on the suitability of the supply chain operating model, ensuring all risks associated with current macroeconomic and geopolitical conditions are considered.  Talent management and retention The recruitment and retention of skilled personnel remains a significant hurdle for many employers who continue to face challenges sourcing talent in a candidate-led recruitment market.  Exacerbating factors include the availability and affordability of housing, salary expectations and flexible working demands.  Many organisations are reverting to pre-pandemic working arrangements, with current trends suggesting we will see more of this in 2025.  Employees are increasingly seeking out more meaning, purpose, fulfilment and flexibility in their work. Those organisations that fail to adapt their value proposition to this shift may struggle to attract and retain the people they need.  Here, internal auditors should appraise their organisation’s workforce planning, talent acquisition and retention strategies, with the aim of understanding and mitigating the impact of staff shortages and turnover.  Management oversight should also be assessed alongside initiatives aimed at enhancing the value proposition for employees with a particular emphasis on soliciting employee input and feedback.  Environmental, social and governance  Beyond mere compliance, many organisations view ESG as a means to enhance value, attract talent, strengthen employee engagement and drive financial performance.  The EU’s Corporate Sustainability Reporting Directive (CSRD) mandates in-scope organisations to be transparent and accountable regarding ESG matters.  In 2025, those companies first in-scope for CSRD will be required to disclose detailed ESG information for 2024, and more organisations are set to fall within scope of the Directive in the years ahead.  Increased non-financial reporting requirements, combined with stakeholder expectations, compel organisations to integrate ESG into their core strategies. They must consider both their own “inside-out” impact on people and the environment and the ESG-related risk and opportunities they face from an “outside-in” perspective.  For their part, internal auditors should review their organisation’s CSRD reporting readiness assessments to ensure that the appropriate processes are in place to support the introduction of ESG metrics.  ESG risks and strategies should be aligned with initiatives such as the United Nations’ Sustainable Development Goals and the European Green Deal.  Fraud and financial crime The prevalence and potency of fraud and financial crime is escalating globally. Sophisticated techniques have intensified the velocity, veracity and volume of fraudulent activity, heightening risks as traditional defences struggle to keep pace.  Advances in technology have given criminals greater scope to exploit organisational vulnerabilities, highlighting the need for robust, adaptive approaches to combat evolving threats.  Fraud and financial crime transcend borders, complicating investigations and prosecutions. Increased global connectivity exacerbates these threats, as instability in one region can impact global markets.  In response to these developments, internal audit should assess the strategies, tools and technologies deployed in their organisation to ensure that risks associated with fraud and financial crime are managed, while also providing advice on governance and control matters. Cyber security As we look to the year ahead, cyber security will continue to be a key focus for organisations.  Cyber-attacks and data breaches rose in 2024, with increasing velocity, volume and sophistication, exacerbating threats to business continuity and heightening the risk of both reputational damage and financial loss.  The ongoing digitisation of business models and processes, and increasingly sophisticated technology available to cyber criminals, necessitates the introduction of robust cyber security measures so that organisations can maintain operations, safeguard stakeholder trust and mitigate future attacks.  Organisations must embed cyber security in core processes and raise workforce awareness to reduce the impacts of inevitable cyber-attacks.  Internal auditors should assess existing controls to mitigate cyber security risks and provide assurance on governance and oversight structures across the three lines of defence. Data privacy and governance In a technology-enabled environment, organisations must prioritise data privacy and protection.  The EU’s General Data Protection Regulation (GDPR) enforces strict regulations protecting personal data, granting individuals control over their information.  Organisations must review their data privacy frameworks to ensure GDPR compliance. Non-compliance amplifies legal and financial risks and exposes organisations to reputational damage.  Global interconnectedness magnifies the importance of complying with international data transfer rules.  The Data Protection Commission Annual Report 2023 highlighted issues regarding the unauthorised access and disclosure of personal data, often due to employees’ lack of understanding of their responsibilities.  Internal auditors should assess their organisation’s data privacy and protection framework, ensuring compliance with regulatory requirements in data collection, retention, disclosure and transfer, as well as ensuring sufficient staff awareness and appropriate training. Reviews should identify third-party processors and monitor their access to organisational data. Digital disruption and emerging technology The emergence of AI has garnered many headlines and much excitement among those convinced of its potentially transformative effects on life and business. In tandem with this potential, however, comes a raft of new AI-enabled risks and concerns regarding appropriate usage.  In response, the European Parliament has approved the EU AI Act, effective from 1 August 2024, with the aim of ensuring a balanced approach to AI adoption and safeguarding against risk.  The Act establishes tiered regulatory requirements for AI applications based on risk levels, with prohibitions on certain AI systems coming into effect in February 2025 and the majority of provisions applying from August 2026.  Here, organisations are advised to adopt an integrated approach across legal, compliance, IT and product delivery functions to navigate AI’s complex regulatory environment while also addressing emerging technology risks.  Internal auditors can advise on governance and control matters, engaging with management to enhance AI governance frameworks and internal controls.  Regulatory-driven risk Organisations face an unprecedented level of regulation in 2025. Regulatory environments continue to evolve, requiring compliance in areas such as ICT, AI, ESG, anti-money laundering and data privacy and security.  This regulatory burden challenges organisations to ensure compliance while remaining agile and adaptable to new obligations. Internal auditors must understand the regulatory landscape so that they may thoroughly assess governance structures and controls for compliance.  Management oversight and control structures should also be evaluated to determine the organisation’s preparedness for future compliance requirements.  Internal auditors should also remember that the Institute of Internal Auditors 2024 Global Internal Audit Standards, the main component of the International Professional Practices Framework, are effective since 9 January 2025. Colm Laird is a Director with KPMG Ireland, specialising in risk, governance and internal audit 

Sumer Northern Ireland is gearing up for further growth as it recruits to meet rising demand from the SME sector, says Managing Director Brian Clerkin With optimism on the rise in Northern Ireland’s small-and-medium sized enterprise (SME) sector, Sumer Northern Ireland is poised to support future entrepreneurial success with a growing team and plans for future expansion.  Established in July 2024 when the Belfast office of ASM Chartered Accountants joined the UK-headquartered Sumer Group, Sumer Northern Ireland is led by Managing Director, Brian Clerkin, a Chartered Accountant who has been at the head of the firm for over 12 years. Clerkin joined the Belfast Office of ASM Chartered Accountants in 1997, qualifying as a Chartered Accountant with the firm in 2000. In the years since, he has seen the firm go from strength to strength. “When I joined, we were completely different to the firm we are today. For a start, we were much smaller. There were probably only 20 people in the firm back then,” he says. “I was lucky to spend most of my training contract working for one of the founders, Stephen Sproule, and that was an invaluable experience. I’ve often described it as the best business education I didn’t have to pay for. “Having passed my FAEs and placed in the top ten, I sat down with the Stephen and we worked out a route for the next few years that would give me the best chance of achieving an equity stake.” Clerkin became a Director of the firm in 2004 and a shareholder in 2005. He was appointed Managing Director of the Belfast office of ASM Chartered Accountants in 2012. “Last year, the shareholding directors in the Belfast office decided to join the Sumer Group and we did so officially on 1 July 2024,” Clerkin says. “We were seeing lots of opportunities in the marketplace to take on new work and we felt we needed to make a strategic decision to best enable the firm to grow further and provide opportunities for our future leaders to come through.” Consolidation trend This decision reflects the wider trend towards consolidation that has taken root in the accountancy sector in recent years. “There is a lot of consolidation at the moment, probably to be fair more so in England, Scotland and the Republic of Ireland, than in Northern Ireland to date,” Clerkin says. “Regardless of jurisdiction, however, firms are all facing similar issues, including an appetite for external investment, increased regulation, succession challenges and the need for mid-tier firms to invest in people and technology.” The merger marked Sumer Group’s entry into the accountancy market in Northern Ireland and a new chapter for the team in Belfast. “We were confident this strategic partnership would not only enhance our growth prospects but also expand the range of services and expertise we can offer our clients,” Clerkin says. “Sumer is already a top 15 UK accountancy practice on a mission to champion SME businesses. It was recently recognised in the 2024 Top 50+50 Accountancy Firms by Accountancy Age for being the fastest growing accountancy firm in the UK.” Since the merger, Sumer Northern Ireland has increased its headcount by 20 percent to 120 in response to rising business demand. “We have seen a significant increase in client business since July 2024 coming from clients we already worked with and new clients in the sectors we serve—hospitality, tourism and leisure, manufacturing, distribution, not-for-profit and the public sector, engineering, technology and IT,” Clerkin says. SME outlook in Northern Ireland  Sumer Northern Ireland continues to provide a range of services to SMEs in Northern Ireland, spanning audit and accounting, corporate finance, insolvency, forensic accounting, internal audit and tax services. “The business landscape is constantly evolving, and our clients are subject to an array of economic challenges and opportunities,” Clerkin says. “The issues with our infrastructure and planning systems here in Northern Ireland have been known for years and will take some time to fix. “However, I think businesses in Northern Ireland would like to get a sense that the Northern Ireland Executive recognises these problems and has a tangible plan to address them.  “The blame game, and waiting for Exchequer monies to arrive from London, can’t be an acceptable position to maintain. “Other than that, I think businesses are waiting to see the full impact of the increase in employment costs announced in the 2024 Autumn Budget on both their own cost bases, but also on input costs and consumer confidence.  Despite these challenges, businesses in Northern Ireland are optimistic about their future prospects, according to a Sumer Group report published last September. Produced in partnership with the Entrepreneurs Network, the United Growth report highlighted Northern Ireland as a key region with “particularly bright prospects”.  Seventy-three percent of the Northern Ireland businesses surveyed in the report signalled their intention to increase staff numbers over 12 months, while 78 percent said they anticipated a rise in turnover.  This level of optimism showcased Northern Ireland’s potential as a hub for entrepreneurial growth, the report stated. “I think what we are seeing on the ground is continued growth with cautious optimism,” Clerkin says.  “Northern Ireland has been able to take advantage of opportunities to significantly grow both our tourism and IT industries over the last 10 to 15 years. “If a similar approach is taken to aligning the education sector, local government and the Executive, there is no reason why other sectors such as professional services, high-value engineering, agri-food and biopharma couldn’t also see a similar rise in output and productivity.” Future expansion Sumer Northern Ireland is ready to support this growth with its recent merger allowing the firm to take a “more robust, technology-driven and cost-effective” approach to the non-client facing side of the business in areas such as recruitment, compliance and marketing, Clerkin says. “Personally, I am really enjoying collaborating with the other firms in the Sumer Group to identify and take on cross-referral opportunities, which play to the different areas of expertise within the group,” he says. The firm is now exploring opportunities to grow organically and through potential future acquisitions.  “We expect to announce a number of acquisitions over the course of 2025,” Clerkin says, “and, on the broader stage, the Sumer Group is actively looking at making strategic acquisitions both in those areas of the UK where we are not yet represented and in the Republic of Ireland.”

Urgent policy action is needed to protect the EU from Trump’s protectionist foreign policy and rescue a West increasingly beholden to China and Russia, writes Judy Dempsey  The years after the devastating Second World War shaped the cooperative relationship between the US and Europe. Washington launched the German Marshall Fund to put what was then Western Europe back on its feet.  Inspiring European figures led by French foreign minister Robert Schuman, and supported by the US, founded the European Coal and Steel Community—the precursor to today’s European Union (EU). This was a special era. For Europe, after the nightmare of the Holocaust and Nazism followed by Stalinism, it was about forging an ideology based on peace, democracy, economic prosperity and integration—all in a divided Europe.  In Washington, multilateral institutions prospered. They included the World Bank, the International Monetary Fund, the World Trade Organisation, and US support for United Nations (UN) bodies, such as the International Atomic Energy Agency, the World Health Organisation and other multilateral agencies.  More recently, the US, the EU and many other countries ‘updated’ their approach to multilateralism with the signing of the Paris Agreement. This legally binding international treaty on climate change was adopted by 196 parties at the UN Climate Change Conference in 2016.  By contrast, US President Donald Trump’s inauguration speech this year dispensed with aspects of multilateralism and cooperation, making transnationalism and bilateralism his administration’s leitmotiv.  Trump has walked away from the Paris Agreement and the World Health Organisation, and intends to slap heavy tariffs on EU exports to the US unless, of course, European companies move across the Atlantic…or Europeans buy more American energy…or Europeans spend a whopping five percent of their gross domestic product on defence to take on the costs of their own security.  They will also be encouraged to buy American military equipment. Most European leaders have professed shock at Trump’s pronouncements—as if they didn’t know what to expect. They say they want to get on with the new US administration, but on what basis? Trump is no admirer of the EU. He challenges the bloc’s ideological edifice, built on accountability, the rule of law and fundamental values such as an independent media, an independent judiciary, human rights and asylum—and multilateralism.   These qualities don’t have a ‘shop price’. Trump’s policies do. His focus is on deals and trade-offs.  This may suit some EU countries, such as Hungary and Slovakia, whose leaders are pro-Putin—although it is worth noting here that Hungary, under Prime Minister Viktor Orban, is becoming a hub for Chinese investments which may not please Trump.  There is also Italy’s Prime Minister Giorgia Meloni, the only European leader to attend Trump’s inauguration. She could be pivotal in making the EU-US relationship constructive. Further, European countries are unprepared to strategically work together for their collective security, whether or not they are neutral. Russia’s war on Ukraine should have provided adequate warning to European countries, particularly Germany, to prepare for Europe’s security, the security of Ukraine and their eastern neighbours. It hasn’t. With some exceptions, European countries such as Poland, Denmark and the Nordic states understand the threats posed by Russia. The same cannot be said for the European perception of Trump’s new ‘transactional’ administration which lacks the post-1945 focus on Atlanticism. Instead, Europe’s liberal elites continue to resort to their complacent comfort zones.  Criticising Trump does not provide the basis for concrete policy safeguarding multilateralism, protecting Europe and rescuing a West increasingly beholden to China and Russia. Who in Europe is taking the lead? Judy Dempsey is Non-resident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the February/March 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees or the editor.