Settlement Agreements have been reached with Mr Brian Hughes and Mr John O’Callaghan
The investigations concerned the audit of the financial statements Greenlight Reinsurance Ireland DAC for the year end 2018.
The Authority has decided to impose a Reprimand and a Fine of €10,500 on Mr Brian Hughes. In respect of Mr John O Callaghan the Authority has decided to impose a Reprimand and a Fine of €10,500.
The investigation of Mr Brian Hughes related to his role as the engagement partner for this statutory audit. In respect of the investigation of Mr John O’Callaghan, it concerned his role as the EQCR for this audit.
IAASA’s investigation concerning Mr Hughes, identified a number of areas of non-compliance with international standards on auditing including; overall objectives of the independent auditor, identifying and assessing risks of material misstatement, communication with Those Charged with Governance (TCWG), forming an opinion and reporting on financial statements and communicating Key Audit Matters (KAM) in the independent auditor’s report. In respect of Mr O Callaghan the investigation identified non-compliance with international standards on auditing relating to quality control for an audit of financial statements.
Commenting on the publication of the settlements, IAASA CEO Kevin Prendergast said; “This investigation uncovered serious deficiencies in how the audit was undertaken. Amongst the issues that have formed the subject of this settlement, auditors need to satisfy themselves as to the adequacy of work undertaken by other audit firms, in particular where that work is undertaken in accordance with a different set of auditing standards. The engagement quality control review partner is tasked with ensuring that the audit is properly carried out and so also bears responsibility for audit failures”
The Settlement Agreements are available here.