Revised Audit Regulations - Effective 1 January 2020

Nov 21, 2019

Revised Audit Regulations – effective 1 January 2020

The Institute’s Audit Regulations and Guidance (‘the Audit Regulations’) have been updated to reflect the requirements of the Companies Act 2014 following amendment by the Companies (Statutory Audits) Act 2018 (‘the 2018 Act’).   The revised Audit Regulations will take effect from 1 January 2020 and replace the current Audit Regulations which have been in effect since 1 April 2017.  

The revised Audit Regulations and Guidance is now available to read here.

The majority of the provisions of the 2018 Act were previously reflected in Irish law by S.I. 312 of 2016[1] and so are already addressed in the current Audit Regulations.   

The key changes in the revised Audit Regulations are:

  • Change in the eligibility criteria for firms with Irish audit registration

This amendment of Audit Regulation 2.03 reflects the requirements of s.1473 of the Companies Act 2014 and relates to the composition of the body which is responsible for the management and administration of the firm.   Going forward, the management body of a firm with Irish audit registration must be composed of a majority of members (by headcount rather than voting rights) who hold the appropriate audit qualification.  The management body is whatever group is responsible for the administration and management of the firm.  This body could be a separate management board but does not have to be.

The Institute’s Professional Standards Department (‘PSD’) recently wrote to audit compliance principals to inform them of this change and advise firms who do not currently meet these revised control criteria to begin to address this issue if the firm wishes to continue to be included on the Irish audit register.    

Audit compliance principals with any queries on this issue can contact for assistance.

  • CPD requirements for responsible individuals

There is an increased emphasis at Audit Regulation 3.17 and new Audit Regulation 3.17A on the requirement for every responsible individual to undertake appropriate audit related CPD.

  •  Legal references

The revised Audit Regulations have updated legal references to refer to the Companies Act 2014 (as amended) instead of S.I.312 of 2016 where appropriate. 

  • Public auditor a concept of the past

All references to ‘public auditor’ have been removed from the revised Audit Regulations as the 2018 Act removed this concept from Irish company law.  

[1] European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No. 537/2014) Regulations 2016