This article deals with the Companies (Auditing and Accounting) Bill, 2003 and how the Bill affects company auditors, directors and companies themselves. The author highlights various sections of the Bill including the provisions designed to:
–provide for the establishment of the Irish Auditing and Accounting Supervisory Authority and to give power to it to supervise the regulatory functions of the recognised accountancy bodies.
–ensure that a company's accounts are in full compliance with the Companies Acts, with the Authority being given the power to call company's directors to account for non-compliance and require revised accounts to be made.
–provide for the establishment of audit committees from amongst the Board of Directors of companies in order to stream line responsibility in this regard, the members of which would be responsible for liasing with the auditor, monitoring his work and advising the Board on audit related matters.
–set out measures to be taken to ensure auditor independence including a requirement that disclosure be made by a company of the non-audit work carried out by an auditor in any financial year together with a statement made by the Directors to the effect that any non-audit remuneration received by the company's auditor has not impaired his independence. This may cause difficulties in practice.
–to oblige company directors to make an annual "Director's Compliance Statement" to the effect that their company has complied with all it's tax, company law and other relevant legal obligations and the auditor is obliged to confirm whether in his opinion the director's compliance statement is fair and reasonable.
–to oblige company directors to include within their annual report a statement to the effect that they acknowledge that they are responsible for ensuring the company's compliance with relevant enactments and outlining how they are discharging this responsibility.
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