ICAI welcomes Drennan appointment

The Institute of Chartered Accountants in Ireland (ICAI) has welcomed the appointment of Ian Drennan as Chief Executive Officer of the Irish Auditing and Accounting Supervisory Authority (IAASA).

The Authority, which will be based in Naas, Co. Kildare, will now set about developing a detailed work programme and preparing for its formal establishment on a statutory basis.

The legislation providing for the Authority’s formal establishment has not yet been commenced. On commencement of the relevant provisions, IAASA will be conferred with statutory responsibility for:

- Supervision of how accountancy bodies regulate and monitor their members;

- The promotion of adherence to high professional standards in the auditing and accountancy profession;

- Monitoring whether the financial statements of certain companies and other undertakings comply with the Companies Acts; and

- The provision of specialist advice to the Minister on auditing and accounting matters.

Commenting on Mr Drennan's appointment, Terence O’Rourke, ICAI President said: "The accounting profession has worked hard with the Government since the establishment of the review group on auditing in 2000 to ensure that Ireland has a supervision and corporate governance regime second to none in Western Europe. The task facing the new chief executive is to build on that start.

"Minister Ahern has already indicated his support in principle for measures to ensure that only accountants who are members of recognised bodies under law should be entitled to call themselves accountants. This is an important consumer protection initiative that we will be expecting the new CEO to make quick progress on.

"There are also issues arising form the revised EU Directive on Auditing that IAASA will be expected to advise Government on. In particular, ICAI believes that the Directive increases the onus on Irish Government to deal with the unfair exposure to liability faced by Irish auditors."