Anthony Lawlor (Kildare North, Fine Gael) | Oireachtas source

The point is where it is coming from. The ICAI was mentioned. The institute has a view, which depends on its members who pay a levy. The organisation is dictated to by the membership. I am nervous about where the funding will come from as IASA seeks to increase in size. I would rather it came from the Exchequer, which is independent. We might not be able to afford it at the moment but this would ensure independence rather than having the money come from bodies the authority is supposed to be regulating. That is my criticism of the current set up.

Mr. Houlihan referred to the issue of reform. If we analyse this properly, we will recognise that all the building blocks were in place to make sure what happened could not happen but they were not implemented properly. I am sceptical about reform for the sake of it. We have gone over the top in the context of regulation from a position where nothing was regulated, examined and checked to everything being checked, which is stifling companies. The happy medium is in the centre where everyone can get on board. As Mr. O'Toole said, the regulations relating to the responsibilities of directors need to be implemented more quickly than is being suggested because they have responsibilities. I am a director of a charitable company and I have significant responsibilities to make sure the audited accounts are furnished. If one wants to take on the role of director, drink red wine and quaff quail's eggs, there are responsibilities. That happened in the banking sector.

The IASA said it is not happy with joint audits and it does not recommend them. Joint audits provide a double check within a company and if legislation is implemented that provides that companies must change their auditor after eight years, such audits might ease the transition from one auditor to another.

Interested parties were invited to respond with proposals relating to the proposed directive. What role do the big four companies have in making submissions? What role do they have in influencing the Commission's thinking?

The Chairman referred to an issue that also affects charitable organisations, which we hope to address in legislation. Many SMEs are legally required to undergo audits and this puts a financial strain on them. Will the Department include anything in its submission on the directive to protect these companies in order that they can be excluded based on size?