Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I move amendment No. 33:

In page 20, before section 32, to insert the following new section:

“PART 4
AUDITOR ASSURANCE

32.—The Central Bank Act 1997 is amended by inserting the following new section after section 27B:

27BA.—(1) Where the Bank considers it necessary owing to the nature, scale or complexity of the activities of a regulated financial service provider, it may, by notice in writing to the auditor of the regulated financial service provider, require the auditor to conduct an examination for the purpose of providing to the Bank a statement as to the extent to which the regulated financial service provider has complied with obligations imposed by or under such provisions of financial services legislation as are specified in the notice.
(2) The notice—

(a) shall be given not less than 3 months before the date on which the auditor’s report on the regulated financial service provider’s accounts is due to be submitted to the Bank, and
(b) shall specify the standards in accordance with which the examination is to be conducted.

(3) The auditor shall conduct an examination in accordance with the notice and during the examination shall undertake such testing procedures and obtain such information as the auditor thinks appropriate.
(4) The auditor shall, not more than 2 months after the date on which the auditor’s report on the relevant regulated financial service provider’s accounts is due to be submitted to the Bank, provide to the Bank a statement outlining the findings of the examination (including, in particular, the outcome of the testing procedures undertaken, and the evidence obtained, by the auditor during the examination).
(5) If the auditor is not satisfied that the regulated financial service provider has complied with an obligation imposed under or by virtue of the provisions of financial services legislation specified in the notice, the auditor shall include in the statement the reasons why the auditor is not so satisfied.
(6) The Bank may make regulations prescribing the obligations imposed by or under provisions of financial services legislation any or all of which may be specified in a notice under subsection (1).
(7) The Bank may prescribe an obligation imposed by or under a provision of financial services legislation in regulations under subsection (6) if and only if the provision concerns—

(a) administrative or accounting procedures of regulated financial service providers,
(b) internal control mechanisms of, or risk management by, regulated financial service providers, or
(c) the organisational structure or governance of regulated financial service providers.

(7) Before making regulations under this section the Bank shall consult the Minister and the Minister for Jobs, Enterprise and Innovation.
(8) In specifying under subsection (2)(b) the standards in accordance with an examination is to be conducted, the Bank shall have regard to internationally recognised standards for assurance and auditing.”.”.

These amendments allow the Central Bank to require auditors to provide a report on issues such as internal controls, accounting practices and governance. They follow on from earlier recommendations in the Comptroller and Auditor General's reports.