Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The pending implementation of the 2014 revised EU audit directive and regulations which underpin the Deputy’s question was first brought to the attention of my officials in the Department of Finance in respect of the potential impact for NAMA in May 2016 by officials within the Department of Jobs, Enterprise and Innovation, who are responsible for transposing the directive into Irish law.  The Department of Jobs, Enterprise and Innovation made contact with my Department and the Office of the Comptroller and Auditor General regarding the implementation of statutory audit obligations in the 2014 revised EU audit directive and regulations prior to their transposition into Irish law via Statutory Instrument 312 of 2016 and the Companies Act 2014.

My Department engaged over a number of months with the Department of Jobs, Enterprise and Innovation, the Office of the Comptroller and Auditor General and NAMA on this matter.  My Department also sought legal advice from the Office of the Attorney General on the directive which requires that certain companies, including NAMA, be audited by a statutory auditor within the meaning of the directive.

This audit requirement is separate from and in addition to the audit requirements set out in the NAMA Act which remain in effect. It was also confirmed that the Comptroller and Auditor General was not a statutory auditor within the meaning of the directive. I understand both NAMA and the Office of the Comptroller and Auditor General obtained separate legal advice which concurred with this position. Hence, the Comptroller and Auditor General's audit of the statutory financial statements of the NAMA group of entities from the financial year ending on 31 December 2016 onwards does not fulfil the requirements of the directive. I am advised that the Comptroller and Auditor General believes that, at a minimum, a change in legislation will be required in order for him to become a statutory auditor. In that regard, cognisance would also need to be taken of the particular features of the Constitution which safeguard the independence of the role.

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