New measure to boost corporate governance announced by Minister Michael Ahern

Minister makes Order bringing into operation Section 37 of the Companies (Auditing and Accounting) Act 2003

Michael Ahern, Minister for Trade and Commerce, announced today (Monday 19^th February, 2007) that he has made an Order commencing Section 37 of the Companies (Auditing and Accounting) Act, 2003 (No 44 of 2003) with effect from 1^st March 2007.

Section 37 of the Companies (Auditing and Accounting) Act, 2003 amends Section 194 of the Companies Act, 1990 which relates to the duty of auditors. The new measure extends the responsibilities of auditors by requiring, if requested, additional information to be provided to the Director of Corporate Enforcement in relation to any reported possible indictable offence under the Companies Acts.

“The present provisions will contribute to good corporate governance which is essential to a healthy operating environment for the business of the Country, and, indeed the economy as a whole”, Minister Ahern observed on signing the Order. He also took the opportunity to commend the Office of the Director of Corporate Enforcement on having prepared revised guidance in relation to auditor reporting obligations, jointly with the Consultative Committee of Accountancy Bodies and the Auditing Practices Board, in preparation for the commencement of this provision. “This revised guidance will help clarify for auditors just what the new legislative requirements entail and how they are to be complied with”, Minister Ahern said.

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