Auditing changes ‘could damage foreign investment into Ireland’

A green paper on auditing, launched by the European Commissioner Michel Barnier, could have damaging consequences for foreign direct investment into Ireland and many businesses located in the IFSC, say sources familiar with the situation.

Legislative changes proposed in the discussion document include a stipulation that companies be legally obliged to change auditor every six years. It is also proposed that certain firms be ordered to conduct joint audits.

A senior partner at one of the big four accountancy firms warns that these proposals will greatly add to the cost of doing business across the eurozone, which will weigh on Ireland’s attractiveness as a location for foreign investment.