Assignment of functions between IAASA and the RABs
The Statutory Audits Directive Regulations 2016 (SI 312 of 2016) assign certain functions to IAASA, and others to the Recognised Accountancy Bodies (RABs) under IAASA's supervision.
Regulation 33 of SI 312 of 2016 provides that IAASA shall conduct the following tasks –
Quality assurance inspections of statutory auditors and audit firms of public interest entities (‘PIEs’) and their audits of PIEs;
Investigations into statutory auditors and audit firms of PIEs arising out of quality assurance inspections or referrals from other authorities; and
Imposing sanctions on statutory auditors and audit firms of PIE auditors pursuant to such investigations.
Regulation 33 also assigns the conduct of the following tasks in respect of statutory auditors and audit firms to the six RABs:
Approvals and registration, including the recognition of EU Member State firms;
Quality assurance reviews of statutory auditors and audit firms in relation to audits of entities that are not PIEs; and
Investigations and discipline.
IAASA can take a task (in whole or in part or in a particular instance) from a RAB where the Authority is satisfied that the RAB has failed to carry out that task and it is in the public interest to do so. In such cases, the cost of performing the task will continue to be funded by the RAB concerned. Consequently, IAASA is responsible for the oversight of the RABs’ performance of the foregoing tasks in respect statutory audit.
Details of any task performed by IAASA in place of a RAB will be published on the IAASA website.