Ireland · Reporting regimes beyond the financial statements

The statutory audit regime, auditor appointment by a public-interest entity and the audit committee

the Companies Act 2014 · sections 1467, 1468, 1474, 1475, 1512, 1513, 1516, 1529, 1548, 1550, 1551 and 1554

The selection of an auditor by a public-interest entity is an evidenced procedure, not a decision. The entity must keep the records of the selection procedures for at least 6 years from the date on which they were concluded (section 1513(6)(b)). An entity that runs a tender and keeps only the appointment letter cannot show that the procedure met the section.

The audit committee has a fixed composition that has to be tested against each member. The majority of its members must be non-executive directors of the kind section 1551(2) describes. At least one of those directors must be a person who has competence in accounting or auditing (section 1551(4)). The members as a whole must have competence relevant to the sector in which the audited entity operates (section 1551(6)), and the chairman must be appointed by the members and must be independent of the audited entity (section 1551(7)).

Sections 1467, 1468, 1474 and 1475 govern the restrictions on acting as a statutory auditor and the powers of the Director. If a person refuses or fails to produce evidence within 30 days after the date of the requirement, section 1474(2) applies. A defendant who intends to contest the statement contained in a certificate must give the notice section 1475(3) requires.

Sections 1512, 1513 and 1516 govern the appointment of the statutory auditor by a public-interest entity and the selection procedure. Sections 1529, 1548 and 1550 govern auditing standards, rotation and prohibited non-audit services, and where a public-interest entity is exempt from the requirement to have an audit committee, the additional provision in section 1529(1) applies. Section 1551 sets the audit committee requirement, the composition rules above, the recommendation on which any proposal to appoint an auditor must be based (section 1551(8)), and the statement required by section 1551(12) where the exemption in section 1551(11)(c) is used. Section 1554 carries the related provision.

Working files 183, 184, 185 and 186 of the IE-COMPANY agent toolkit cover this situation. Working file 183 works through the restrictions on acting as a statutory auditor and the Director's powers. Working file 184 works through the appointment of the auditor by a public-interest entity and the selection procedure records. Working file 185 works through auditing standards, rotation and prohibited non-audit services. Working file 186 works through the audit committee, its composition, the competence tests and the statements it must make.

• Working file 183 · Restrictions on acting as a statutory auditor and the Director's powers
• Working file 184 · Appointment of the statutory auditor by a public-interest entity
• Working file 185 · Auditing standards, rotation and prohibited non-audit services
• Working file 186 · Audit committees of public-interest entities

ComplianceSME tracks the Companies Act 2014 and updates the toolkit on your account through the Compliance Complete account, so that you are never working from a superseded version. Compliance Complete

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