Niall Collins (Limerick County, Fianna Fail) | Oireachtas source

During the debate on Second Stage we outlined that we had some reservations about the loss of the audit exemption for small companies. I said it would impose an unnecessary burden on SMEs at a time when we should be doing everything we could to help them by reducing regulation and red tape. I also said it was unfair on the auditors of small companies to have to perform audits of companies that were almost too small to audit in the first instance. Many of them have only one or two members of staff. The loss of the exemption will also apply where a company misses an annual return deadline with the Companies Registration Office where, for example, a director suffers a serious illness or there is a death in the family. These are issues that come up every day of the week and challenges faced by small companies.

During the debate on Second Stage Deputies also received communications from some of the accountancy bodies outlining some of their concerns about the legislation. I am concerned about section 9 on the basis of what has been said. I am sure the Minister is aware of the fact that the accountancy bodies perceive the proposed changes as a misuse of the audit function. They argue that we will be out of step with the rest of the European Union and that the changes will impose an additional administrative burden on the SME sector. They also point out that the cost of going to the High Court will be prohibitive for most small companies and will overly penalise them in their day to day functioning. It is on that basis that Fianna Fáil is opposing sections 9 and 10.