The Authority notes the publication by the Chartered Accountants Regulatory Board (‘CARB’) of a Report on the reviews of the audits of the provisions for impairments by certain Financial Institutions for the financial years ended between 30 September 2008 and 31 March 2009. CARB is the regulatory arm of Chartered Accountants Ireland (‘CAI’).
The current legal system for the regulation of these auditors confers responsibility on CAI to undertake such reviews. The reviews were carried out at IAASA’s instigation and in the context of CAI’s responsibility to regulate and monitor its members and member firms. IAASA also advised CAI that the work should be overseen by an independent expert, possessing relevant experience and preferably sourced from outside the jurisdiction.
Having received the Report, the Board of IAASA will examine the issues it raises to determine the appropriate response in the context of IAASA’s existing remit and powers.
As a result of the significant reforms in the regulation of audit, from June 2016, responsibility for the inspection and investigation of public interest entity audits such as those of banks and building societies transfers from CAI to IAASA. This means that in future, scrutiny of the largest audit firms in the State will be undertaken by IAASA. This development, long advocated by IAASA, is an important enhancement of the oversight of the audit profession and will bring increased independence, rigour and transparency to the process.