Michael Ahern (Cork East, Fianna Fail)
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The Deputy will be aware that audit exemption was first introduced in Ireland under the Companies (Amendment) (No. 2) Act 1999 and came into effect in February 2000. A review of the limits was undertaken in 2003 and as a result of that review the turnover limit was increased to €1.5 million with effect from 1 July 2004. Statistics supplied by the Registrar of Companies shows that fewer than 5,000 companies availed of the audit exemption in the first ten months of this year. This represents around 3% of the total number of companies on the register of companies.

In line with Government policy, Better Regulation, it is appropriate that all regulatory requirements, including auditing requirements, should be kept under review in consultation with all relevant stakeholders. An ongoing reform and consolidation of the Companies Acts is well under way and it may be appropriate to address the audit exemption limit legislatively in that Bill.