Dara Calleary (Mayo, Fianna Fail)
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316. To ask the Minister for Jobs, Enterprise and Innovation the number of Irish based public interest entities that will be subject to the arrangements proposed in the draft EU regulation COMs (2011) 778 and (2011) 779/3; the total costs of implementing the proposed changes here; and if he will make a statement on the matter. [2379/14]

Dara Calleary (Mayo, Fianna Fail)
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317. To ask the Minister for Jobs, Enterprise and Innovation his views regarding the impact of the draft EU regulation COMs (2011) 778 and (2011)799/3; and if he will make a statement on the matter. [2380/14]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 316 and 317 together.

The draft compromise text on the package of Audit proposals arising from the third informal Trilogue with the European Parliament was agreed by the Committee of Permanent Representatives on 18 December 2013 and will be put to the European Parliament for its approval over the coming time.

The Audit proposals, consisting of a draft Regulation and a Draft Directive were brought forward by the European Commission in late 2011 to address concerns at weaknesses it perceived in the EU audit system in the wake of the international financial crisis.

The agreement reached on the draft Audit Directive and Regulation is expected to improve audit quality and contribute to enhanced confidence in financial statements. In particular, the draft Regulation is designed to build on those provisions relating to the statutory audits of public interest entities set out in Directive 2006/43/EC. These draft audit measures are the product of long and intensive negotiations and impose less onerous obligations than those originally proposed by the EU Commission.

The audit measures are expected to be adopted in the first half of 2014 and the Regulation will take effect two years after its adoption date, with an equivalent period provided for the transposition by Member States of the draft Directive.

My Department established a contact group of interested parties during the negotiation period of these draft Audit package. It is the intention of the Department to consult with stakeholders on the adoption of these Audit measures as regards their implementation in Irish company law.

Based on figures supplied to the Department by the Irish Auditing and Accounting Supervisory Authority (IAASA), which are currently being updated, there are in the region of 1,200 public interest entities in Ireland. It is not envisaged that there will be increased direct costs to the Exchequer in relation to the implementation of these measures, either as regards the audits of public interest entities or of companies other than public interest entities. The costs of implementing the EU Audit measures to Public Interest Entities to which they apply cannot be quantified, but it is expected that there will some increased costs.