Wednesday, 3rd November, 2010: Having engaged in a consultation exercise with interested parties, the Department of Enterprise, Trade & Innovation has announced the decision by Minister for Trade & Commerce, Mr. Billy Kelleher, TD, to implement the European Commission’s Recommendation on external quality assurance of certain audits. In implementing the Recommendation, the model to be adopted will be one of direct inspections, such inspections to be carried out by IAASA. Pursuant to a request from the Minister, IAASA has commenced work on the development of an implementation plan and will shortly be initiating a dialogue with key stakeholders. It is anticipated that implementation will require the enactment of certain legislative provisions in due course.
The text of the Recommendation, which applies to statutory auditors and audit firms auditing Public Interest Entities (‘PIEs’), can be accessed here. PIEs comprise of entities whose securities have been admitted to trading on certain regulated markets, credit institutions and insurance undertakings.