Christine Nangle and Bríd Murphy explore how pre-audit training factors influence professional scepticism, uncovering insights into recruitment, education and decision-making that could enhance audit quality and address persistent challenges in the auditing profession The importance of professional scepticism (PS) gained prominence at the close of the last century. The failure of major companies and financial scandals highlighted the need for auditors to adopt a more questioning and sceptical approach to their work.  Despite numerous academic studies and a heightened focus on this issue in the profession, failure to exhibit PS is still the most cited reason for sanctions imposed on audit firms.  This constant challenge underscores the critical need to foster a culture of scepticism among auditors to enhance audit quality and mitigate the risk of failures. The Brydon Report (2019) assigns blame to the practice of ‘rules-following’ which has blunted scepticism as well as the application of judgement, and calls for improved auditor education to foster the development of PS.   PS includes both an innate ability (trait scepticism) and a temporary mindset influenced by situational factors (state scepticism). Many studies have looked into how PS develops, but there are conflicting findings about what increases PS levels.  With the International Auditing and Assurance Standards Board driving strategic focus on PS through its Professional Scepticism Consultation Group and standards development, the profession must better understand the factors contributing to PS development to ensure accountants and auditors are appropriately skilled to meet evolving requirements and expectations. This study looks at how factors in pre-audit training contracts influence PS. By investigating these pre-audit factors, the study aims to provide information that can improve recruitment practices and audit quality. Understanding what fosters PS in graduates could lead to enhanced training and development initiatives, ensuring new auditors develop the critical thinking and questioning mindset essential for effective auditing in today's complex financial landscape. This study was made possible by the cooperation of accounting firms and their newly hired trainees. It forms part of a broader PhD study in Dublin City University (DCU) which aims to re-measure the levels of PS in the same participants as they approach the completion of their training contracts. A range of firms, from large to medium-sized professional practices, helped collect 332 surveys from participants. Most participants began their training contracts one to three months before completing the survey, allowing the research findings to be connected to factors before their professional training. Influences The survey revealed no significant difference in PS levels between male and female participants. However, it found that participants aged 26+ demonstrated greater PS levels.  Of the 332 participants, 26 percent had undertaken postgraduate studies, and results indicate postgraduate education is positively linked to increased PS levels. And while 73 percent of participants in this study had engaged in ethics education prior to their training contract, this study found no relationship between ethics education and PS levels.  Professional scepticism vs judgement  PS influences decision-making processes and judgements. Higher levels of PS should improve critical evaluation, enhance objectivity and mitigate cognitive biases that may cloud judgment, improving risk assessment and overall audit quality.  This study used scenarios to assess how PS levels affect initial judgements about fraud and errors based on different client experiences –  neutral, positive and negative. Participants were presented with three scenarios, containing details of the same material misstatement. The first scenario involved a neutral client experience, the second indicated a positive experience, and the third showed a negative experience. Participants answered questions after each scenario, about their perceptions of fraud, risk and client trustworthiness. Participants with higher levels of PS made more prudent judgments in all three scenarios. However, this effect was stronger in the positive and neutral scenarios, suggesting individuals with higher levels of scepticism are less likely to change their judgments based on different client experiences.  The study also highlighted concepts from ancient philosophy, specifically Pyrrhonian scepticism, which encourages refraining from making judgments and suspending belief, which can result in indecision or inaction.  Philosopher Sextus Empiricus warned that being too sceptical could trap people in doubt and hinder decision-making. To allow for analysis of this phenomenon, the survey allowed participants to skip questions instead of forcing them to answer.  Interestingly, the findings show those who skipped four or more judgments had significantly higher PS scores than those who skipped fewer. This suggests an optimal level of scepticism where too little leads to poor judgment, while too much can impede one's decision-making capacity. These initial findings provide some insights regarding potential recruitment screening criteria. It is hoped that the broader study will offer further insights regarding the development of PS during trainee contracts. A greater understanding of PS development at this important stage in the career of an auditor will help to ensure audit trainees’ development aligns with regulatory priorities to improve public trust and mitigate sanctions in the audit profession. Christine Nangle is Head of Discipline of Accounting at TU Dublin Bríd Murphy is Associate Professor at DCU

As assessments fade into the rearview mirror, it’s tempting to relax, but sustained, structured study now can set Chartered Accountancy students up for long-term success. Bryan Rankin explains how to stay motivated The life of a Chartered Accountants Ireland student can be difficult, particularly in the run-up to exams.   At a time when friends and family have been making merry over the festive season, many of you were studying hard in preparation for interim and on-demand assessments in early January in all three academic programmes.  With these assessments now completed, the idea of continued study may feel unappealing.  We hear all the arguments, but in our experience, this is definitely a time for all students to keep up their studies, albeit at a more sustainable pace.  While there may not be exams in the next few weeks, there is a busy schedule of webinars to attend leading up to the mock examinations. For dates of all webinars and exams, please refer to course timetables on the Institute website.  While there’s certainly a place for some pre-exam ‘cramming’, this works only as a revision tool where you’re returning to lessons already practised and understood. There simply won’t be time to undertake the coursework involved in multiple subjects and work through increasingly complex problems. Rather, what we want to aim for is a study plan that we can maintain and commit to.  So, how should we structure a longer-term study plan that still keeps us productive? A study plan We’ve said it before in this series of articles, but starting out with a study plan is definitely the number one piece of advice for a productive study programme.  If you haven’t made a study plan yet this year, make it your New Year’s resolution.  A schedule provides motivation and structure, as you’re not wasting time at each study session deciding what’s on the agenda this time.   It’s a good idea to base your study sessions on the live webinars coming up in the following weeks. By watching the teaching videos and then attempting several questions at each session in the Learning Hub, you’ll find each webinar more rewarding and engaging while understanding new learning principles at a gradual pace.  Win back time We all have busy lives with many commitments, so start your plan by assessing where you can win back more time during the week for study slots aside from nine-to-five working hours.  There may be times during the week when you can be more productive. For example, getting up an hour early on Saturday morning is not incredibly difficult and can be very productive.  Equally, the next few months might be a time to set aside some (but not all!) social commitments – just until you pass your exams!  Your plan should show a series of short, intensive 45-minute study sessions with plenty of breaks for exercise and fresh air. Typically, we would envisage students studying two or more evenings during the working week (in addition to attending webinars), as well as two half-days of study at the weekend.   Become goal-oriented For a successful longer-term study programme, keeping highly motivated will be an important consideration.  Whether it’s CAP1 exams in May or FAE in August, these deadlines can feel distant, and you may lose that sense of urgency. Take time to consider what is the driving force pushing you ahead through these tough times, be it the pride your family will take in your achievement, the expectations of your training firm or attaining your qualification and taking your career to another level.  Studies show that by building in plenty of short-term goals and rewards, we keep ourselves motivated from week to week. Whether that’s a coffee date with friends or a trip to the cinema, it’s a well-deserved, guilt-free couple of hours that will keep spirits high, so make time for social contact. Group work Consider combining your own solo studies with some group work. This could be online or in person but learning within a social context will overcome any sense that you’re in this alone.  In fact, there are over a thousand students in each academic programme, all in the same situation as you and working toward the same goal. We suggest splitting out a session in the Learning Hub on a given subject, where one person/group studies one part and presents it back to the others with advice and observations.  Put your phone down Finally, it may seem obvious, but the top inhibitors to successful study are your phone and social media.  It’s all too easy to accidentally scroll for hours without realising how much time has passed.  It’s a good idea to place your phone out of reach while studying or in another room. Make your phone part of your short break away from the desk, then put it down again.  Maintain your focus It would be understandable to feel that, as we finally emerge from a busy winter, it’s time for our studies to be on the back burner for a time. On the contrary, we’re here to encourage you to maintain that focus and momentum through the spring months. We guarantee that you’ll reap the rewards come exam time.  Bryan Rankin is Head of Student Operations at Chartered Accountants Ireland

As a trainee Chartered Accountant, success isn’t just about passing exams and gaining work experience—it’s about building connections, honing soft skills and finding balance. Becky Maye, CASSI PRO, explains how your regional student society can help you grow personally and professionally through events, networking and community support As trainee accountants, our main focus is on studying hard, passing our exams and gaining practical experience.  While these are undoubtedly important aspects of your professional development, you must also develop your soft skills, such as communication, teamwork, leadership and networking, which are essential for your career progression and personal growth.  One of the best ways to do this is to join your local student society and attend its events. Your regional student society is a platform to connect with your peers, share your challenges and successes, learn from each other and have fun. It is also a way to access valuable resources like mentoring, guidance, support and opportunities.  By joining your local student society, you become part of a community that can help you achieve your goals and enhance your well-being. Each regional society, as well as CASSI, organises events throughout the year designed to cater to your interests, needs and preferences. These events range from social to educational, casual to formal, and local to national. They offer you the chance to meet new people, make friends, network with professionals, learn new skills, explore new places and enjoy yourself. Some of the past events your student society has organised include: Webinars: Throughout the year, CASSI, along with Barden, have presented a variety of webinars to help students with all aspects of their careers. These webinars allow great insights on how to navigate coming out of contract, working abroad or career advice from the Barden experts.  Pub quizzes: These are a great way to test your general knowledge, laugh and bond with other students. They are also a good opportunity to relax after a long day of work or study and unwind with a drink and a snack. Brunches: These are a delicious way to start your day, especially on weekends. They are also a good opportunity to catch up with fellow students, share your plans and goals, and get tips and advice. Day trips and hikes: These are a fun way to discover new attractions, cultures and experiences. They are also a good opportunity to broaden your horizons, get active, clear your mind and create memories. Coffee mornings and catch-ups during study leave: These are a convenient way to take a break from your revision, recharge your energy and chat with your friends. They are also a good opportunity to motivate each other, exchange tips and tricks and solve any doubts or queries. The CASSI weekend away: This is the highlight of the year where you get to spend a whole weekend with all the regional student societies who come together in a different location. Over the weekend, students enjoy various daytime activities and, of course, the black-tie ball. This is a great opportunity to celebrate your achievements, reward yourself for your hard work and have a blast. It is also worth noting that during these events, we raised huge amounts of money for Jigsaw, our charity partner for the year! It was amazing to give back while also enjoying our time together. Joining your regional student society and attending its events can bring you many personal and professional benefits.  You can gain knowledge, skills, confidence, connections, support and happiness while having a lot of fun, which is important for your mental health and well-being.  So, what are you waiting for? Join your student society today, and don't miss out on the next event.  Keep an eye out for details of these events on our various social media accounts! 

From the Institute's Professional Accounting team .... In December 2024 the UK Government laid legislation, the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 before Parliament to increase the monetary size thresholds for micro, small and medium-sized entities. It also removes certain requirements from the Directors’ Report.  The new monetary size threshold changes are effective from 6 April 2025. Please also click to read the explanatory memorandum to the legislation for further insight into the changes.                                This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

For 2024, the Irish Exchequer recorded a surplus of €12.8 billion, up €11.6 billion from 2023, largely reflecting the transfer of once-off receipts from the Apple case. Total tax receipts of €108 billion were collected in 2024, with the main sources of income broken down as follows: Income tax receipts of €35.1 billion were collected. This figure is €2.2 billion, or 6.6 percent ahead of 2023, reflecting earnings growth and strong employment. Corporation tax receipts of €39.1 billion were collected. This figure is €15.2 billion, or 63.9 percent ahead of the previous year, with the bulk of the increase arising from the Apple case. VAT receipts of €21.8 billion were collected. This figure is €1.5 billion, or 7.3 percent ahead of 2023, reflecting solid consumer spending. Commenting on the figures, Minister for Finance Jack Chambers TD said: “The end-year figures are affected by one-off receipts arising from the Court of Justice of the European Union and so it is important to dig below the surface. When we do this, we see solid growth in income tax and VAT receipts last year; these trends demonstrate the underlying strength of our economy. Looking ahead, there are clearly identifiable risks on the horizon. Navigating through these will require a greater focus on competitiveness and on getting the basics right – especially in areas like energy, water, transport and housing. This is why Government is committed to using the proceeds of the CJEU ruling to expand infrastructure in these critical areas.”

Last week, Revenue published preliminary headline results for 2024, showing record-breaking collections for tax and duties of over €107 billion, with a further €30 billion collected on behalf of other government departments and EU Member States. Income tax, corporation tax and VAT were the largest contributors to the tax take in 2024 at €35.1 billion, €39.1 billion and €21.8 billion respectively, all higher than in 2023. Combatting non-compliance remains a key priority for Revenue, in addition to confronting various tax-avoidance schemes. Some of the highlights of this work during 2024 were as follows: Revenue completed almost 311,000 audit and compliance interventions yielding €591 million. Revenue settled 256 tax avoidance cases yielding €46 million. Revenue secured 20 criminal convictions for serious tax evasion and fraud and published 74 tax settlements in the list of tax defaulters. Revenue also reports that the introduction of real-time payroll reporting has led to a year-on-year increase in the number of PAYE taxpayers managing their own tax affairs. During 2024 Revenue processed nearly 1.4 million income tax returns for PAYE for the 2023 year of assessment. Revenue reports that during the first week of 2025, over 175,000 PAYE taxpayers have already filed a return in respect of the 2024 year of assessment.   Looking ahead to property tax pay and file obligations, Revenue reports that the Residential Zoned Land Tax (RZLT) will come into force in 2025 and will apply to land which is zoned and serviced for residential use. By 31 January 2025, local authorities will publish the revised map for 2025, showing land that is within the scope of RZLT and Revenue’s RZLT registration portal will open at that time. RZLT returns and liabilities will be due in May 2025. Separately, Revenue also published a statistical infographic on the Debt Warehouse Scheme, which is available here and which shows that 94 percent of tax debt is either settled or secured by Phased Payment Arrangements.

Minister for Finance Jack Chambers TD issued a press release on 1 January 2025 reminding taxpayers of several budgetary measures which took effect from that date. These changes relate to the income tax package, the rent tax credit, the benefit-in-kind exemption for installation of BEV (Battery Electric Vehicle) home chargers and the VRT rate change for commercial BEVs. More details of these changes are included in the Press Release.

Revenue has created a new Tax and Duty Manual regarding opinions provided by the High Wealth and Finance Services Division. A new procedure applies whereby all such applications must be submitted on a fully completed Form RTS 1A. The treatment for Financial Services branches remains the same as before. Further information is available in eBrief No.330/24.

Revenue has updated the Tax and Duty Manual regarding the general rule as to the deduction of expenses in employment. New guidance is provided on how to make a claim for employment expenses in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of employment that are outside the flat rate expense (FRE) allowance regime (paragraph 3). New detailed guidance is also provided on how to make a claim for a FRE allowance together with details of eight employment categories in which the FRE increased with effect from 1 January 2023 (paragraph 7). The manual has also been updated as follows: the circumstances where expenditure on a course is regarded as relevant to the business of an employer for the purpose of deciding whether the cost of such courses is regarded as a taxable benefit when paid for or reimbursed by an employer (paragraph 5), and the deductibility of typical expenses (paragraph 6).

Revenue has updated the Tax and Duty Manual which provides guidelines for VAT registration with information for VAT-registered applicants subsequently applying for postponed accounting via ROS. The Tax and Duty Manual which sets out the guidelines for registration for income tax, corporation tax, relevant contracts tax, employers’ PAYE and certain other tax heads has also been updated to reflect re-naming of the National Employer Helpline to the National Employer Helpdesk.

Revenue has updated the Tax and Duty Manual which outlines the procedures for agents or advisors acting on behalf of taxpayers. As previously advised, Revenue is ending the practice, generally known as the “A2” process, of making repayments of income tax and/or USC to the bank accounts of tax agents, rather than directly to taxpayers. 

Section 599 TCA 1997 provides for relief from capital gains tax (CGT) on the transfer by an individual, who has attained 55 years of age, of certain business or agricultural assets to a “child”, as defined in the section. Revenue has updated the Tax and Duty Manual which provides guidance on section 599 to reflect the Finance Act 2024 amendments. The key changes are: To provide the option to an individual to defer the CGT liability arising on such a disposal made on or after 1 January 2025, as the value of the assets exceeds the €10 million limit on relief granted, To provide for a general anti-avoidance provision in respect of relief granted on transfers of qualifying assets from an individual to a child, and the potential deferral of CGT arising in respect of such transfers, and To provide new and updated examples and information on the operation of the relief, and a restructuring of the content for ease of reference.