Auditing and Assurance Standards and Guidance

Auditing Standards (Ireland)

FRC ISAs (UK and Ireland) applicable for periods beginning on or after 15 December 2010 but before 17 June 2016

ISA (UK and Ireland) 250A Consideration of laws and regulations in an audit of financial statements

Application and Other Explanatory Material
The Auditor's Consideration of Compliance with Laws and Regulations
Money Laundering Offences
A11-2.Anti-money laundering legislation in the UK and Ireland imposes a duty on the auditor to report suspected money laundering activity. There are similar laws and regulations relating to financing terrorist offences9f. The detailed legislation in both countries differs but the impact on the auditor can broadly be summarised as follows:
 dotbulletPartners and staff in audit firms are required to report suspicions of conduct which would constitute a criminal offence which gives rise to direct or indirect benefit.
 dotbulletPartners and staff in audit firms need to be alert to the dangers of 'tipping-off' (in the UK) or 'prejudicing an investigation' (in Ireland), as this will constitute a criminal offence under the anti-money laundering legislation.4a
 For the UK further detail is set out in Practice Note 12 (Revised): Money Laundering – Guidance for auditors on UK legislation.
9f In the UK, the Terrorism Act 2000 contains reporting requirements for the laundering of terrorist funds which include any funds that are likely to be used for the financing of terrorism.
In Ireland, the Criminal Justice Act 1994 (as amended) requires reporting suspicions of terrorist financing to the appropriate authorities.
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