IAASA has today published its 2014 Annual Report. The Report outlines the work the Authority carried out throughout 2014, examples of which include:
- Increased on-site supervision of the Prescribed Accountancy Bodies;
- 27 examinations of individual financial statements during which IAASA engaged on a number of significant financial reporting matters and secured undertakings for improvements from 11 issuers;
- 20 reviews of financial statements as part of thematic studies; and
- Publications to inform the public and advocate for improved financial reporting.
The Chief Executive and Chairman’s Statements give further information on the work carried out by the Authority in 2014 and key issues which lie ahead.
The Report highlights some significant and imminent reforms and developments which will broaden the scope and transparency of its work. These include new rules relating to confidentiality which will allow IAASA to share more information about its work with the public and new measures to reform the Audit market. The measures in relation to the audit market will become mandatory in 2016 and among IAASA’s increased responsibilities will be the direct inspection and investigation of the work of the largest audit firms in the State with regard to the quality of their audits of Public Interest Entities. This function is currently conducted by the Prescribed Accountancy Bodies under IAASA’s supervision. Direct scrutiny by the Authority is a significant change which has been long advocated by IAASA and is designed to bring a further level of independence and rigour to the process.
While IAASA welcomes these reforms and the expanded role it will play in maintaining robust and credible standards of practice within the audit profession, the Annual Report also highlights the Authority’s urgent need for more resources in order to fulfil its growing remit and responsibilities. IAASA is continuing to engage with the Minister for Jobs, Enterprise and Innovation, Mr Richard Bruton TD, on resolving this matter as quickly as possible.