Andrew Doyle (Wicklow, Fine Gael)
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248. To ask the Minister for Jobs, Enterprise and Innovation if he will provide the definition for an accountant under existing legislation; if he will outline the proposed changes for the definition of accounts, under the Companies Act 2014, that is due to be enacted at a later date; if accountants, under the legislation, must be recognised by a professional association; and if he will make a statement on the matter. [6952/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The Companies Act, 2014 was signed by the President on 23 December 2014. It maintains the current legal position regarding accountants, in that it does not contain a legal definition of the term 'accountant', nor does it require that accountants must be recognised by a professional association/body. The Companies Act 2014 introduces a modern Company Law Code for Ireland and brings significant benefits to business.

The Company Law Review Group, in its 2007 report, recommended the regulation of the title “accountant. On foot of this recommendation, the Department of Enterprise, Trade and Innovation (as it then was), considered the matter and in particular noted the views of the Office of the Director of Corporate Enforcement and the Competition Authority. The Competition Authority took the view that there was no clear public interest case which would warrant the legal protection of the term accountant.

It should be noted that the Review Group on Auditing, which reported in 2000 also concluded that there was no compelling case for recommending statutory protection for the term accountant.

However, in light of concerns expressed by members of the professional accountancy bodies and Members of this House during the passage of the Companies Act 2014. I haverequested the Department to undertake a consultation with all interested parties on the issue and it is hoped that this consultation will take place once the necessary preparatory work to commence the 2014 Act has been completed. To inform the consultation process the Irish Auditing and Accounting Supervisory Authority sought information from the nine Prescribed Accountancy Bodies ('PAB's) to establish whether the PABs have specific evidence or experience of adverse outcomes arising for members of the public from engaging the services of an unqualified person. In particular, they requested information the PABs may have in respect of individuals who are excluded from their membership for misconduct and who continue to provide services to the public.

Part 6 of the Companies Act 2014 collates the various requirements of different Acts in relation to accounting records, financial statements and the audit of those financial statements. To a large extent, the requirements are unchanged from existing law which has been substantially amended over the years. The relevant provisions have been redrafted in order to make them easier to understand and they have been restructured into a more easily readable format. It also covers other matters relating to auditors, particularly rules governing the appointment of statutory auditors and their removal from office.

Accounts are referred to as “financial statements” and references to “books of account" are referred to as “accounting records”.