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.
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