Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move amendment No. 24:

In page 78, line 35, after “934E” to insert “and subject to subsection (9)”.

This amendment is technical and inserts a cross-reference to subsection (9) which is proposed to be inserted by amendment No. 25. Amendment No. 25 is intended to clarify the text of section 1504. As required under Article 24 of the EU audit regulation, the IAASA has direct responsibility for quality assurance inspections of audits of public interest entities by statutory auditors and audit firms, investigations into statutory auditors and audit firms arising from these inspections, and sanctions on statutory auditors and audit firms of public interest entities.

A recognised accountancy body may wish to undertake an investigation into the audit of a public interest entity by a statutory auditor or audit firm that is a member of the body itself. However, only the IAASA may impose a sanction on the statutory auditor or audit firm of a public interest entity.

Section 1504 provides for certain actions to be taken after a recognised accountancy body has decided after an investigation that the statutory auditor or audit firm of a public interest entity has committed a breach and any appeal procedures have been completed. It also provides that in such a case the IAASA may impose a sanction on the statutory auditor or audit firm of the public interest entity having considered all the facts of the case.

This amendment inserts a new subsection (9) and provides that, prior to undertaking such an investigation, the body must in the first instance seek the consent of the IAASA and shall not commence and investigation until it has consent from the IAASA to do so.