From 21 July 2021 the Institute of Chartered Accountants in England and Wales (‘ICAEW’) is no longer a recognised accountancy body (RAB) in Ireland.  As notified to Institute members and firms in recent news items and in direct communication to audit compliance principals, the revocation of ICAEW’s RAB status will have implications for Institute registered audit firms who include ICAEW members amongst the firm’s responsible individuals (RIs) or amongst the qualified majority of owners and management board members of the audit firm.  Firms have been advised of the appropriate actions to take in this regard. It has been necessary to amend the Institute’s Audit Regulations and Guidance (effective 1 January 2020) (‘the Audit Regulations – Ireland’) to reflect the fact that ICAEW ceased to be a RAB on 21 July 2021.  This amendment has been made by way an addendum to the Audit Regulations – Ireland (‘The Addendum).  The Addendum is effective from 21 July 2021 and is to be read in conjunction with the Audit Regulations - Ireland. The Addendum sets out changes to the Audit Regulations – Ireland which are required to reflect the change in ICAEW’s status on 21 July 2021 and to ensure that the Audit Regulations – Ireland continue to be fit for purpose after that date.   The Addendum includes amendment to the definitions of ‘Institute’, ‘appropriate qualification’, ‘audit affiliate’ and ‘practising certificate’ and clarifies a reference in guidance to the eligibility of reciprocal members for audit registration. Until 21 July 2021 the Audit Regulations – Ireland, have been issued jointly by the Institute, ICAEW and the Institute of Chartered Accountants of Scotland.   From 21 July 2021 ICAEW ceased to apply the Audit Regulations – Ireland.   From 1 January 2021 the Audit Regulations – Ireland only apply to Ireland and separate draft Audit Regulations and Guidance for the UK were issued on that date to reflect the change in relationship between the UK and EU as a consequence of Brexit.  A full update of the Audit Regulations – Ireland is planned in due course.   The Addendum and the Audit Regulations - Ireland, which are to be read together, are available on the Institute’s website.

The UK Financial Intelligence Unit has introduced a new SAR glossary code for money laundering through markets (MLTM).MLTM is money laundering taking place within capital markets in which shares, derivatives, bonds and other instruments are bought and sold. An explanatory note re the new code is available here The revised SAR Glossary Codes and Reporting Routes document which is now on the National Crime Agency website at: https://www.nationalcrimeagency.gov.uk/who-we-are/publications/517-glossary-codes-and-reporting-routes-may-2021/file  The purpose of this booklet is to provide guidance on the use of Suspicious Activity Report (SAR) glossary codes and reporting routes.

IAASA has recently advised that the Institute of Chartered Accountants in England and Wales (ICAEW) will cease to be a Recognised Accountancy Body (RAB) under Irish company law from 21 July 2021 and will thereafter have no authority to qualify or approve statutory auditors or statutory audit firms in Ireland. Unsurprisingly, the Institute has had a number of enquiries regarding ongoing eligibility for audit registration in Ireland from Institute firms who include ICAEW members amongst the firm’s responsible individuals (RIs) or amongst the qualified majority of owners and management board members of the audit firm.   The Institute has taken legal advice on the issues involved and has identified a solution which will cause minimal disruption to these Institute firms as a result of ICAEW’s cessation as a RAB. Eligibility for statutory auditor (responsible individual/RI) status in Ireland is dependent on being a member of a RAB as well as holding the appropriate qualification.  An ICAEW member who is a RI at an Institute firm should become a member of another RAB before 21 July 2021.  The Institute (a RAB) has in place a reciprocal membership agreement with ICAEW under which a member of ICAEW can easily become a member of the Institute so long as membership of ICAEW is also retained.     Similarly, ICAEW members who are currently counted in the qualified majority of owners and management board members at Institute approved audit firms will need to become members of another RAB by 21 July 2021 to ensure that the firm’s ongoing eligibility for Irish audit registration is unaffected. The Institute will continue to recognise the audit qualification awarded by ICAEW before 21 July 2021 as an appropriate qualification for audit approval purposes.  ICAEW members who wish to apply for reciprocal membership of the Institute can do so by contacting the Membership Department at registry@charteredaccountants.ie. In the coming weeks, the Institute’s Professional Standards Department will write to the audit compliance principals at Institute firms approved for audit in Ireland in relation to the matters outlined above.  Queries on these matters can be addressed to professionalstandards@charteredaccountants.ie.