ICAI calls on Government to announce date of new audit rules

The Institute of Chartered Accountants in Ireland (ICAI) has called on the Government to avoid "further unnecessary and confusing" delay around the introduction of the new audit exemption level by announcing the date from which it will apply.

In December the Companies Act 2003 was amended to increase the turnover level at which companies are exempt from having their annual accounts subjected to a statutory audit from €317,000 to €1.5m.

ICAI Chief Executive, Brian Walsh said in a statement today: "We welcome this increase because it puts Irish business on a more competitive basis with its Great Britain and Northern Ireland counterparts although the audit exemption level in GB has been increased substantially in the meantime."

He added that : "We urgently require clarification from the Government as to how and when the new threshold is to apply. We are already two months into the new-year and audit work is now surrounded by confusion and uncertainty.

"Take, for example, a company where turnover is under the new limit but above the previous limit. Directors will not want audit work to commence with the expense involved and then discover that it may not have been necessary when the year end date to which it will apply is confirmed".

He warned that: "audit work may be delayed as the Government announcement is awaited".