CPA criticises Govt for stalling on audit exemptions

The Institute of Certified Public Accountants (CPA) has criticised the Government for delaying the introduction of changes in audit requirements for small firms.

The changes remove the legal obligation to conduct a compulsory audit for firms with a turnover of less than €1.5m, and replace the previous threshold of €317,000.

However firms will have to wait another year before they are exempted as the new rules come into force for the financial year starting July 1, 2004.

The Government first announced last December the intention to bring in a new audit exemption threshold for the annual statutory audit in the Companies (Auditing and Accounting) Act 2003, and is now facing criticism from accountancy bodies and small business groups for delaying on the introduction of the measure.

The CPA has accused the Government of "delivering another blow to small companies" by stalling the introduction of the measure.

The CPA said the annual audit for small family run firms is unnecessary and that many of these firms would have to wait a year to be exempt as many do not operate on a calendar year basis.

The Institute of Chartered Accountants in Ireland yesterday welcomed the announcement of a definite date but also warned that considerable work lay ahead for the Government in respect of other sections of the Act.

“While we welcome this progress, it remains the case that the most significant element of the Act, the establishment of the Irish auditing and accounting supervisory authority on a statutory basis, is yet to be commenced.

"As a result work on developing procedures to facilitate the commencement of other sections of the Act will be inevitably delayed,” said ICAI deputy president Terence O'Rourke.