Minister Martin welcomes the publication of the First Annual Report from the Irish Auditing and Accounting Supervisory Authority

Minister sees standing and reputation of the profession being enhanced

Minister for Enterprise, Trade and Employment, Mr Micheál Martin, today paid tribute to the work done by IAASA in the discharge of the first year of its regulatory remit in relation to the accounting profession.

"I am impressed with the range of activities undertaken by IAASA in its first year of operation," the Minister remarked, "and with the headway which it has made in respect of reviewing the arrangements by which the accountancy bodies supervise their members." This involved examining, in detail, the relevant procedures of 4 of the 9 prescribed accountancy bodies. "In the process,” the Minister continued, “a number of issues were uncovered in relation to how these bodies discharge their functions, and IAASA did not hesitate to take the necessary and appropriate action in such cases".

On the EU front, IAASA has a key involvement in arrangements for the inauguration of a new Community-wide regime for auditors - the so called 8th Directive - which will take effect in mid-2008 and will contribute to enhancing confidence in the financial statements and annual reports of companies across the EU, to the benefit of capital markets and the wider economy.

In its short existence to date, IAASA has also been given responsibility for enforcement of compliance by listed companies with the financial reporting aspects of the EU Transparency Directive, which takes effect in the current year.

The highlights of the Authority’s activities during 2006 included:

• Detailed reviews of four of the nine prescribed accountancy bodies’ regulatory and monitoring arrangements were initiated. In addition, the Authority granted its approval for a number of amendments to the constitutional documents of the prescribed bodies;

• Nomination as Ireland’s representative on the European Group of Auditors’ Oversight Bodies. This is the expert group established by the European Commission to provide assistance in EU-wide preparations for the enactment of the EU Eighth Company Law Directive on statutory audit;

• Founding member of the International Forum of Independent Audit Regulators, established to foster communication and co-operation between international audit regulators;

• The Authority also acts as a specialist source of advice to the Minister for Enterprise, Trade and Employment on auditing and accounting matters and recently completed a report on the question of whether statutory protection should be afforded to the term ‘accountant’. The Authority recommended that the term should be restricted but that persons not entitled to call themselves accountants should be allowed to provide accountancy services to the public. The recommendation has now been sent for consideration to the Company Law Review Group.

In conclusion Minister Martin congratulated IAASA on its work to date, observing that, "IAASA has already contributed to the improvement of the corporate governance landscape in Ireland and has staked a valid place in the country's commercial regulatory framework."

ENDS

ETE 1755

Notes for editors:

The full Annual Report is available on www.iaasa.ie

IAASA’s paper on giving legal protection to the term “accountant” and the 8^th Directive are also available on their website.