European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016.

• Jurisdiction: Ireland
• Citation: IR SI 312/2016
• Year: 2016

ARRANGEMENT OF REGULATIONS

PART 1

PRELIMINARY MATTERS

1. Citation, commencement and construction

2. Revocation and savings

3. Application

4. Interpretation — general

PART 2

AMENDMENT OF COMPANIES ACT 2014

5. Definition

6. Amendment of section 2 of Principal Act

7. Amendment of section 35 of Principal Act

8. Amendment of section 322 of Principal Act

9. Amendment of section 336 of Principal Act

10. Amendment of section 337 of Principal Act

11. Amendment of section 380 of Principal Act

12. Amendment of section 390 of Principal Act

13. Amendment of section 394 of Principal Act

14. Amendment of section 900 of Principal Act

15. Amendment of section 904 of Principal Act

16. Amendment of section 905 of Principal Act

17. Amendment of section 906 of Principal Act

18. Amendment of section 907 of Principal Act

19. Amendment of section 918 of Principal Act

20. Amendment of section 919 of Principal Act

21. Amendment of section 930 of Principal Act

22. Amendment of section 932 of Principal Act

23. Supplemental provisions in relation to section 934 (including as concerns its relationship to provisions of 2016 Audits Regulations)

24. Amendment of Principal Act

25. Amendment of section 938 of Principal Act

26. Amendment of section 941 of Principal Act

27. Application to court to confirm decision to impose relevant sanction

28. Amendment of section 1097 of Principal Act

29. Amendment of section 1305 of Principal Act

30. Amendment of section 1441 of Principal Act

31. Amendment of section 1448 of Principal Act

PART 3

DESIGNATION OF COMPETENT AUTHORITY AND ASSIGNMENT OF FUNCTIONS

32. Designation of competent authority

33. Assignment of functions

34. Annual audit programme and activity report

35. Operation of certain provisions with regard to particular recognised accountancy bodies

36. Conflicts of interest to be avoided

PART 4

APPROVAL OF STATUTORY AUDITORS AND AUDIT FIRMS, PROHIBITION ON UNAPPROVED PERSONS ACTING AS AUDITOR, ETC.

Chapter 1

Approval of Statutory Auditors and Audit Firms

37. Applications for approval, general principle as to good repute, etc.

38. Basis on which audit firms approved in other Member States may carry out statutory audits in State

39. Restriction as to persons who may carry out statutory audits

40. Restriction on acting as statutory auditor

41. Restriction on acting as statutory audit firm

42. Offence for contravening Regulation 39, 40 or 41

43. Conditions for approval as statutory auditor

44. Transitional provisions

45. Appropriate qualification for purpose of Regulation 43(a)

46. Conditions for approval as statutory audit firm

47. Powers of Director of Corporate Enforcement

48. Evidence in prosecutions under Regulation 47

Chapter 2

Aptitude Test

49. Aptitude test to be passed

50. Scope of aptitude test

51. Adequate standards to be applied in administration of aptitude test

Chapter 3

Withdrawal of Approval

52. Grounds for mandatory withdrawal of approval in case of statutory auditor

53. Grounds for mandatory withdrawal in case of statutory audit firm

54. Appeals against withdrawal of approval

55. Certain persons to be notified of withdrawal of approval

56. Other persons to be notified of withdrawal of approval

PART 5

STANDARDS AND PROVISIONS APPLICABLE TO STATUTORY AUDITORS AND AUDIT FIRMS

Chapter 1

Appointment of Statutory Auditors or Audit Firms

57. Prohibition of contractual clauses restricting choice of auditors

58. Selection procedures for statutory auditors or audit firms by public-interest entities

59. Appointment of statutory auditors or audit firms by public-interest entities — informing the Supervisory Authority

60. Removal of statutory auditors or audit firms by public-interest entities — supplementary provisions

61. Directors’ report to include date of last appointment of statutory auditor or audit firm

Chapter 2

Standards for Statutory Auditors

62. Continuing education

63. Professional ethics

64. Independence, objectivity and professional scepticism

65. Standards for purposes of Regulations 62 to 64

66. Arrangements for enforcement of standards

Chapter 3

Confidentiality and Professional Secrecy

67. Rules of confidentiality to apply

68. Supplemental provisions in relation to Regulation 67

69. Saving

70. Rules of confidentiality in relation to entities in third countries

71. Incoming statutory auditor or audit firm to be afforded access to information

72. Access by recognised accountancy body to audit documents

73. Access by Supervisory Authority to information and documents held by recognised accountancy bodies or relevant persons

74. Professional privilege

75. No liability for acts done in compliance with Regulations

76. Restriction of section 940 of Companies Act 2014

Chapter 4

Auditing Standards and Audit Reporting

77. Auditing standards to be applied

78. Audit of group accounts — responsibility of group auditor

79. Further responsibility of group auditor

80. Additional report to audit committee

81. Auditors’ reporting obligations under Article 12 of Regulation (EU) No 537/2014

Chapter 5

Record keeping

82. Record keeping

Chapter 6

Objectivity

83. Future viability

PART 6

PUBLIC REGISTER

84. Public register

85. Notification of information to Registrar of Companies

86. Prohibition on certain acts unless registered

87. Obligation of statutory auditor or audit firm to notify certain information

88. Information must be signed

89. Removal of third-country auditor or audit entity registered in accordance with Regulation 135 from public register

90. Language of information to be entered in public register

PART 7

INDEPENDENCE

91. Requirement for independence — general

92. Professional scepticism

93. Prohibited relationships — specific provisions to secure independence

94. Prohibited relationships — financial or beneficial interest

95. Prohibited relationships — mergers and acquisitions

96. Threats to independence and other information to be recorded

97. Preparation for statutory audit and assessment of threats to independence

98. Internal organisation of statutory auditors and audit firms

99. Organisation of work of statutory auditors and audit firms

100. Organisation of work of statutory auditors and audit firms — audit files

101. Restrictions with regard to fees

102. Rotation of key audit partner in cases of public-interest entities

103. Moratorium on taking up certain positions in audited entities

104. Rotation of statutory auditor and audit firms in the case of public-interest entities — extension

105. Rotation — reports by statutory auditor and audit firm in case of public-interest entities

106. Provision of certain prohibited non-audit services by auditors of public-interest entities

PART 8

QUALITY ASSURANCE OF STATUTORY AUDITORS AND AUDIT FIRMS

Chapter 1

Quality assurance

107. Quality assurance by Supervisory Authority of statutory audit of public-interest entities and third-country auditors, etc.

108. System of quality assurance to be put in place

109. Organisation of quality assurance system

110. Quality assurance review deemed to include individual auditors in certain cases

111. Right of recognised accountancy body as regards professional discipline

Chapter 2

Investigations and Sanctions

112. System of investigation and penalties

113. Duty of each recognised accountancy body with regard to sanctions

114. Scope of penalties and publicity in relation to their imposition

PART 9

AUDIT COMMITEES

115. Audit committees for public-interest entities

PART 10

REGULATORY ARRANGEMENTS BETWEEN MEMBER STATES

Chapter 1

Cooperation with other Member States

116. Specific requirements with regard to cooperation

117. Confidentiality of information

118. Supplemental provisions in relation to Regulation 117

119. Obligation to supply information required for certain purposes and saving concerning confidential information

120. Obligation of Supervisory Authority or recognised accountancy body to gather information

121. Application of Regulation 117 to certain information

122. Requesting authority to be notified if its request not complied with

123. Grounds for refusing request for information

124. Use to which information may be put

125. Counterpart authority to be notified of non-compliance with Audit Directive and Regulation (EU) No 537/2014

126. Counterpart authority may be requested to carry out investigation

127. Duty of Supervisory Authority or recognised accountancy body to take certain action

128. Due consideration to be given to counterparty’s request for investigation

129. Grounds for refusing request for investigation

Chapter 2

Mutual Recognition of Regulatory Arrangements between Member States

130. Mutual recognition of regulatory arrangements between Member States

Chapter 3

Transfer of Working Papers to Third-country Competent Authorities

131. Transfer of audit documentation to third-country competent authority

132. Derogation from Regulation 132 in exceptional cases

133. Particulars of working arrangements to be notified

PART 11

THIRD-COUNTRY AUDITORS

Chapter 1

International Aspects

134. Approval of third-country auditor

Chapter 2

Registration and Oversight of Third-country Auditors and Audit Entities

135. Registration of third-country auditors and audit entities

136. Exemption from quality assurance

137. Audit by non-registered auditor or audit entity — consequence

138. Conditions for registration of third-country auditor or audit entity

139. Supervisory Authority may assess matter of equivalence for purposes of Regulation 138(2)(c)

140. Certain fees chargeable by Supervisory Authority

141. Exemptions in case of equivalence

PART 12

MISCELLANEOUS

142. Summary proceedings

143. Savings for disciplinary...