Tánaiste announces establishment of Irish Auditing and Accounting Supervisory Authority

Mary Harney, TD, Tánaiste and Minister for Enterprise, Trade and Employment today (Thursday 26th April, 2001) announced the establishment of the new Supervisory Authority for Auditors recommended in the report of the Review Group on Auditing.

The Irish Auditing and Accounting Supervisory Authority (IAASA), is being established on an interim basis pending the drafting of the necessary legislation to establish the Authority on a permanent statutory basis. The Supervisory Authority is being set up to supervise the regulation by the accountancy bodies of their members’ professional standards.

The report of the Review Group on Auditing contained some eighty recommendations relating to the regulation of the audit and accountancy profession, auditor independence, the auditing of financial institutions and the role of auditors in ensuring compliance with statutory provisions. The Government has endorsed the Report and approved the implementation of its recommendations.

Announcing the establishment of the interim Supervisory Authority, the Tánaiste said "the main aim of the Authority will initially be to advise the Department of Enterprise, Trade and Employment during the drafting of the necessary legislation to establish the Authority on a statutory basis. The Authority will also draw up a business plan to cover the first three years of its operation. The interim Supervisory Authority will also advise the Department in the development of the necessary legislative changes to give effect to the other recommendations of the Review Group on Auditing. Work has already commenced within the Department in drafting the new legislation which it is expected will be published before the end of the year."

The Tánaiste continued "Following receipt of nominations from a number of organisations and interests, I am pleased to announce that membership of the interim Board will represent a broad spectrum of those that are concerned with financial reporting including members of the accountancy profession, users of financial statements, regulators, and the social partners

The interim Board will be chaired by Karen Erwin, Group General Counsel and Director of the Irish Times.

The accountancy profession will be represented by Donal O’Connor of PricewaterhouseCoopers, Tony Kelly of Byrne Curtin Kelly and Brendan Dennehy of BJ Dennehy and Co.

The users/regulators will be represented by Liam O’Reilly, Central Bank of Ireland, John Corcoran, Department of Enterprise, Trade and Employment, Jim Kelly, Revenue Commissioners, Tom Healy, Irish Stock Exchange, Anne Fitzgerald of IAIM and Anne Maher, Pensions Board.

The social partners will be represented by Ben Power, Executive Director, Greecore Group Plc and Senator Joe O’Toole incoming President of ICTU.

Commenting on these appointments the Tánaiste said that the interim Board can be expected to bring a broad breadth of experience to the important functions that will be discharged by the Supervisory Authority

The Tánaiste concluded by indicating that "The establishment of this new Supervisory Authority is a further step in ensuring that there will be stronger company law compliance and enforcement in place in Ireland and will further enhance the reputation of Ireland as a well-regulated jurisdiction. I look forward to working with the interim Supervisory Authority in implementing the important recommendations in the Report of the Review Group on Auditing".

The Review Group on Auditing was established by the Tánaiste and Minister for Enterprise, Trade and Employment, Ms Mary Harney, TD, following from the PAC Parliamentary Inquiry into D.I.R.T. The Review Group was asked to examine current arrangements for the regulation of the accountancy profession, auditor independence, the auditing of financial institutions and the role of auditors in ensuring compliance with statutory provisions. The Group, which was chaired by Senator Joe O’ Toole, met between February and June 2000 and its final Report was presented to the PAC on the 11 July 2000 and was further discussed at the PAC on the 28 November. Following a public consultation on the Report and its recommendations the Government endorsed the Report, approved the establishment of the interim Supervisory Authority and the implementation of the recommendations in the Report. The implementation of these recommendations will require amendments to company law and changes to the constitutions and professional standards of the accountancy bodies.