Ireland

As a member of the European Union (EU), the Republic of Ireland (Ireland) is subject to the accounting, auditing and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations. The European Commission reports that as of the date of the assessment, Ireland has fully aligned its legal framework with the EU acquis communitaire as it relates to accountancy.

Accounting Framework

The Companies Act of 2014 (as amended 2018), stipulates the requirements for preparation of financial statements, including applicable accounting standards and financial reporting thresholds. In accordance with the law, companies with debt or equity listed on a regulated capital market must prepare consolidated financial statements in accordance with EU-endorsed IFRS. All other companies may choose to prepare their financial statements in accordance with financial reporting standards issued by (i) the Financial Reporting Council (FRC) in the United Kingdom (UK), (ii) EU-endorsed IFRS, or (iii) in some limited cases, in accordance with another approved accounting framework, for example US GAAP.

Since 2015, the FRC has issued Financial Reporting Standards (FRS) 102, which is based on IFRS for small- and medium-sized entities (SMEs) but with significant modifications.

Auditing Framework

The auditing requirements are set in the Companies Act of 2014 (as amended 2018) and the Statutory Instrument (SI) 220, 2010 which transposes the Directive 2014/56/EU and EU Regulation 2014/537. The Companies Act of 2014 (as amended 2018) specifies applicable auditing standards—International Standards on Auditing (Ireland) issued by the FRC. The Irish Auditing & Accounting Supervisory Authority (IAASA) adopts auditing standards for use in Ireland under license from the FRC—which incorporate the requirements of 2018 ISA issued by the International Auditing and Assurance Standards Board (IAASB) with specific additions.

The (SI) 220, 2010 stipulates mandatory audit requirements (statutory audits) for all entities, including Public Interest Entities (PIEs), listed entities, financial institutions, and insurance companies, unless they qualify for exemptions based primarily on the size of the entity, nature of activity and company type. Companies that meet the definition of a small company (that is, 50 or fewer employees; turnover/sales of less than € 8.8 million; and balance sheet total not exceeding € 4.4 million), may be exempted from annual audits.

The Companies Act of 2014 (as amended 2018) and the Statutory Instrument No 360 of 2017 (SI No. 360 of 2017) prescribe the key professional and ethical requirements for professional accountants in Ireland, and establish and outline the roles and responsibilities of various bodies involved in regulating the profession.

The Irish Auditing and Accounting Supervisory Authority (IAASA) was established under the provisions of the Companies Act to examine and enforce financial reporting by certain listed entities, and to supervise the regulatory functions of Prescribed Accountancy Bodies (PABs) in Ireland. A PAB is any accountancy body offering accountancy qualifications that comes within the supervisory remit of the IAASA.

IAASA’s additional responsibilities include: (i) supervising how the PABs regulate and monitor their members; (ii) conducting an investigation & disciplinary (I&D) system for public interest entities (PIEs) (iii) promoting adherence to high professional standards in the auditing and accountancy profession; (iv) monitoring whether the financial statements of certain classes of companies comply with the Companies Acts and relevant accounting requirements; (v) conducting quality assurance (QA) reviews of PIEs; (vi) overseeing the QA systems operated by Recognized Accountancy Bodies (RABs), which are PABs that have authority to authorize individuals and firms to conduct audits; (vii) and adopting auditing standards for use in Ireland under license from the Financial Reporting Council (FRC) in the United Kingdom. The IAASA also supervises RABs’ approval and registration of audit firms, adoption of standards on professional ethics, internal quality control of audit firms, continuing education, and the I&D system.

The PABs are: the Association of Chartered Certified Accountants (ACCA); the Association of International Accountants (AIA); the Chartered Institute of Management Accountants (CIMA); the Chartered Institute of Public Finance and Accountancy (CIPFA); the Institute of Chartered Accountants in England & Wales (ICAEW); the Institute of Chartered Accountants in Ireland (ICAI); the Institute of Chartered Accountants of Scotland (ICAS); and the Institute of Certified Public Accountants in Ireland (CPA Ireland). There are RABs in Ireland: ACCA; ICAEW; ICAI; ICAS; and CPA Ireland.

Professional Accountants in Business (PAIBs)—which include technicians, management accountants, and public sector accountants—are not regulated by law or regulation. The PAIBs that voluntarily become members of the Accounting Technicians Ireland, CIMA, or CIPFA are subject to the educational and ethical requirements of these PAOs, as well as their I&D systems.

The Companies Act of 2014 (as amended 2018) and the Statutory Instrument No 360 of 2017 (SI No. 360 of 2017) established the Irish Auditing and Accounting Supervisory Authority (IAASA) as the independent public audit oversight entity.

The IAASA was established to examine and enforce financial reporting by certain listed entities, and to supervise the regulatory functions of Prescribed Accountancy Bodies (PABs) in Ireland. A PAB is any accountancy body offering accountancy qualifications that comes within the supervisory remit of the IAASA.

IAASA’s additional responsibilities include: (i) supervising how the PABs regulate and monitor their members; (ii) conducting an investigation & disciplinary (I&D) system for public interest entities (PIEs) (iii) promoting adherence to high professional standards in the auditing and accountancy profession; (iv) monitoring whether the financial statements of certain classes of companies comply with the Companies Acts and relevant accounting requirements; (v) conducting quality assurance (QA) reviews of PIEs; (vi) overseeing the QA systems operated by Recognized Accountancy Bodies (RABs), which are PABs that have authority to authorize individuals and firms to conduct audits; (vii) and adopting auditing standards for use in Ireland under license from the Financial Reporting Council in the United Kingdom. The IAASA also supervises RABs’ approval and registration of audit firms, adoption of standards on professional ethics, internal quality control of audit firms, continuing education, and the I&D system.

IAASA is a member of the International Forum of Independent Audit Regulators.

Association of Accounting Technicians (AAT)

AAT, established in 1980, is a voluntary membership organization that offers skills-based (vocational) accountancy and finance qualifications. The Chartered Institute of Public Finance and Accountancy (CIPFA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Chartered Institute of Management Accountants (CIMA), and Institute of Chartered Accountants of Scotland (ICAS) offer AAT members a progression route into their respective professional qualifications. AAT regulates its members and ensures that they comply with ethical requirements and is responsible for the investigation and discipline of their members. The AAT is an IFAC member.

Association of Chartered Certified Accountants (ACCA)

The ACCA is a Recognized Supervisory Body (RSB) and Recognized Qualifying Body (RQB) under the Companies Act 2006 in the UK, and a Prescribed Accountancy Body (PAB) and Recognized Accountancy Body (RAB) under the Companies Act of 2003 (as amended) in Ireland. The ACCA is a member of IFAC, Accountancy Europe, and the Consultative Committee of Accountancy Bodies (CCAB) and CCAB—Ireland.

Association of International Accountants (AIA)

The AIA was established in 1928 and has voluntary membership, is an RQB under the UK’s Companies Act 2006 and a PAB under the Companies Act of 2003 (as amended) in Ireland. The AIA is not an IFAC member or associate and it is unclear whether it is a member of any other regional or international professional organization.

Accounting Technicians Ireland (ATI)

The ATI is a voluntary membership organization, established in 1983, that provides aspiring accounting technicians with training, experience, and certification. The ATI is neither a PAB nor an RAB. It does not have an independent regulatory body, but is a partner body with the Institute of Chartered Accountants of Ireland. ATI is an Associate member of IFAC.

Chartered Institute of Management Accountants (CIMA)

CIMA is a voluntary membership organization for management accountants founded in 1919. CIMA is not an RSB or RQB, and its members are not authorized to conduct statutory audits unless they are registered with an RSB. CIMA is a PAB in Ireland under the Irish Companies Act of 2003 (as amended). The institute is a member of IFAC and CCAB—Ireland.

Chartered Institute of Public Finance and Accountancy (CIPFA)

CIPFA is a voluntary membership organization established in 1885. CIPFA’s mission is to be a leader in public financial management both in the UK and globally. CIPFA is a PAB in Ireland and its status as an RQB in the UK is on hold. The institute is a member of IFAC and Accountancy Europe.

Institute of Certified Public Accountants in Ireland (CPA Ireland)

The CPA Ireland is a voluntary membership organization for Ireland’s Certified Public Accountants and is a PAB and RAB in accordance with the Companies Act of 2003 (as amended) in Ireland. The institute is a member of IFAC and Accountancy Europe.

Institute of Chartered Accountants of England Wales (ICAEW)

The ICAEW is a voluntary membership organization for chartered accountants and is an RQB and RSB in accordance with the UK Companies Act of 2006 (as amended). It is also a PAB and RAB under the Companies Act of 2003 (as amended) in Ireland. The ICAEW is a member of IFAC, CCAB, and Accountancy Europe.

Institute of Chartered Accountants of Ireland (ICAI)

The ICAI, a voluntary membership organization established by Royal Charter in 1888, is a member of the CCAB—UK and the CCAB—Ireland. The institute is a PAB and an RAB in Ireland, and an RSB and RQB in the UK. The ICAI is a member of IFAC and Accountancy Europe.

Institute of Chartered Accountants of Scotland (ICAS)

The ICAS, a voluntary membership organization for chartered accountants, is an RQB and RSB in accordance with the UK Companies Act of 2006 (as amended). It is also a PAB and RAB under the Companies Act of 2003 (as amended) in Ireland. The ICAS is a member of IFAC, CCAB, and Accountancy Europe.

Considering Brexit, the jurisdiction will be monitored closely for changes in both the accounting and auditing profession and the work of the Irish Auditing and Accounting Supervisory Authority (IAASA). Reciprocal rights may soon be established to continue to allow for members of the profession to freely practice throughout the islands and across the island of Ireland in particular.

The Companies Act of 2014 (as amended 2018) stipulates that the Irish Auditing and Accounting Supervisory Authority (IAASA) is to conduct quality assurance (QA) reviews for public interest entities (PIEs), and the recognized accountancy bodies (RABs) in Ireland—Association of Chartered Certified Accountants (ACCA), Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Accountants Ireland, Institute of Chartered Accountants of Scotland (ICAS), and CPA Ireland—are to carry out QA reviews for non-PIEs. Accordingly, the scope of the QA review program covers all audits and other assurance engagements.

Statutory Instrument (SI) No. 220 2010 (as amended) adopts ISQC 1, outlines key features that must be present in each QA system, and specifies that the RABs’ QA inspections are to be performed under the supervision of IAASA.

All RABs that are IFAC members have indicated that their QA review systems meet the requirements of SMO 1.

Current Status: Adopted

In accordance with the Companies Act of 2014 (as amended 2018), the prescribed accountancy bodies (PABs) in Ireland share responsibility for initial professional development and continuing professional development requirements (IPD and CPD, respectively) for accountants and auditors. The Irish Auditing and Accounting Supervisory Authority (IAASA) monitors the IPD and CPD requirements established by PABs. All PABs provide qualifications for accountancy professionals.

Seven PABs—Association of Chartered Certified Accountants (ACCA), Chartered Institute of Public Finance and Accountancy (CIPFA), Chartered Institute of Management Accountants (CIMA), Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Accountants Ireland (ICAI), Institute of Chartered Accountants of Scotland (ICAS), and CPA Ireland—are members of IFAC and report that their IPD and CPD requirements fulfill those of the revised IES (2015).

The Association of International Accountants is not an IFAC member, and it is unclear if its IPD and CPD requirements are in line with the revised IES based on the publicly available information. The Accounting Technicians Ireland (ATI) does not require mandatory CPD for its members and its IPD requirements are not fully in line with revised IES (2015).

Current Status: Partially Adopted

The Companies Act of 2014 (as amended 2018) specifies the applicable auditing standards—International Standards on Auditing (Ireland) as issued by the Financial Reporting Council (FRC). The Irish Auditing & Accounting Supervisory Authority adopts auditing standards for use in Ireland under license from the FRC in the United Kingdom.

The standards incorporate the requirements of 2018 ISA issued by the International Auditing and Assurance Standards Board with specific additions.

Current Status: Adopted

In accordance with the Companies Act of 2014 (as amended 2018), the prescribed accountancy bodies (PABs) in Ireland share responsibility for establishing ethical requirements for their members. The Irish Auditing and Accounting Supervisory Authority (IAASA) in accordance with the Companies Act 2014 monitors PABs’ adoption of ethical standards in Ireland. Furthermore, it has issued the IAASA Ethical Standard for Auditors (Ireland) 2017 which is based on the 2016 IESBA Code of Ethics.

The seven (7) PABs—Association of Chartered Certified Accountants (ACCA), Chartered Institute of Public Finance and Accountancy (CIPFA), Chartered Institute of Management Accountants (CIMA), Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Accountants Ireland (ICAI), Institute of Chartered Accountants of Scotland (ICAS), and CPA Ireland—are members of IFAC. All PABs have either directly adopted or converged their ethical requirements for all designations of members to align with the 2018 IESBA Code of Ethics. All PABs indicate that they have an ongoing process to consider and incorporate new and amended requirements issued by the IESBA.

The ATI is not a PAB, but it has set ethical requirements for accounting technicians that voluntarily join the institute and become subject its issued regulations. The ATI Code of Ethics was first issued in June 2007 and is reviewed at least every two years to ensure that it is in line with all the relevant requirements of the IESBA Code of Ethics. ATI last revised its Code in January 2018 which is available on the website.

While the Association of International Accountants is not an IFAC member, information publicly available on its website indicates that it has adopted the 2016 IESBA Code of Ethics as well.

Current Status: Adopted

The Irish Government is responsible for the adoption of public sector accounting standards. Both cash and accrual basis of accounting are allowed for the presentation of public sector financial statements.

According to the International Public Sector Financial Accountability Index: 2018 Status Report, accrual-basis IPSAS have not been adopted in Ireland, however there appear to be plans to adopt cash-basis IPSAS by 2023. The most recent published financial statements can be accessed here.

Current Status: Not Adopted

In accordance with the Companies Act of 2014 (as amended 2018), the prescribed accountancy bodies (PABs) and the Irish Auditing and Supervisory Authority (IAASA) share responsibility for the system of investigation and discipline (I&D) in Ireland. Whereas each PAB is responsible for the design and implementation of an I&D system for its members, the IAASA is responsible for I&D for public interest entities.

Seven PABs—Association of Chartered Certified Accountants (ACCA), Chartered Institute of Public Finance and Accountancy (CIPFA), Chartered Institute of Management Accountants (CIMA), Institute of Chartered Accountants in England and Wales (ICAEW), Chartered Accountants Ireland (ICAI), Institute of Chartered Accountants of Scotland (ICAS), and CPA Ireland—are members of IFAC. All report that they have adopted the requirements of SMO 6 for their I&D procedures.

The ATI sets I&D procedures for accounting technicians that voluntarily join the institute and become subject its issued regulations. The ATI reports that it maintains an I&D system in line with SMO 6 requirements.

The Association of International Accountants also reports to have an I&D system in line with the main requirements of SMO 6.

Current Status: Adopted

The Companies Act of 2014 (as amended 2018), stipulates the requirements for preparation of financial statements, including applicable accounting standards and financial reporting thresholds. In accordance with the law, companies with debt or equity listed on a regulated capital market must prepare consolidated financial statements in accordance with EU-endorsed IFRS. All other companies may choose to prepare their financial statements using financial reporting standards issued by: (i) the Financial Reporting Council (FRC) in the United Kingdom (UK); (ii) EU-endorsed IFRS; or (iii) in some limited cases, in accordance with another approved accounting framework, for example US GAAP.

Since 2015, Financial Reporting Standards (FRS) 102 as issued by the FRC—which is based on IFRS for small- and medium-sized entities (SMEs) but with significant modifications—can be applied by other companies.

Current Status: Partially Adopted

Relevant Organizations

• Accounting Standards Board (ASB)
• Accounting Technicians Ireland (ATI)
• Association of International Accountants (AIA)
• Chartered Accountants Ireland (CAI)
• Chartered Accountants Regulatory Board (CARB)
• Companies Registration Office (CRO)
• Financial Reporting Council (FRC)
• Institute of Incorporated Public Accountants (IIPA)
• The Institute of Certified Public Accountants in Ireland (CPA Ireland)
• Irish Auditing and Accounting Supervisory Authority (IAASA)
• Professional Oversight Board (POB)

Relevant Legislation

• Companies (Auditing and Accounting) Act 2003 (as amended 2018), Ireland
• Companies Act, 2006, United Kingdom (UK)
• Companies Act 2014, Ireland
• CPA Ireland Byelaw 13 “Practice & Audit Regulations”
• IAASA, Statutory Instrument No. 97 of 2012, Ireland
• IAASA, Statutory Instrument No. 220 of 2010, Ireland
• IAASA, Statutory Instrument No. 360 of 2017, Ireland

Relevant Publications

• ACCA, IPSAS Implementation: Current Status and Challenges, October 2017.
• Accountancy Europe, Definition of Public Interest Entities in Europe: State of Play after the Implementation of the 2014 Audit Reform, November 2017.
• Accountancy Europe, FEE Survey on Structure and Organisation of the Accountancy Profession across 30 European Countries, March 2012.
• Accountancy Europe, Member State Implementation of Directive 2014/95/EU, 2017.
• ATI, SMO Action Plan, November 2019.
• CIPFA & IFAC, International Public Sector Financial Accountability Index, 2018.
• European Commission, Audit Directive – Transposition Status, May 24, 2018.
• IAASA, Brexit and its Potential Impact on Audit and Accountancy, May 2018.
• IAASA, Ethical Standard for Auditors (Ireland), April 2017.
• IAASA, International Standards on Auditing for Use in Ireland, 2018.
• IAASA, Profile of the Profession, 2014, May 2015.
• IFIAR, IFIAR Member Profile: Ireland, 2018.
• IFRS Foundation, Jurisdiction Profile: Republic of Ireland, June 2016.
• Mondaq, Ireland: Companies (Statutory Audits) Act 2018, October 2018.