ICAI calls for deferral of audit committee provisions

The Institute of Chartered Accountants in Ireland (ICAI) has called on the Government not to consider early commencement of the sections of the 2003 Companies Act relating to audit committees in its submission to the Office of the Director for Corporate Enforcement Consultation paper entitled ‘Draft ODCE Guidance on Audit Committees’.

In 2003, ICAI supported the decision to establish in law the principle that certain companies would be required to have audit committees. However, the institute was critical of the government decision to include detailed provisions relating to audit committees in primary legislation.

ICAI director for representation and technical policy Aidan Lambe said: "It is our view that there are now considerable difficulties around any commencement of the audit committee provisions.

"These do not arise however from a principled objection on our part to any particular provision, but of the practical issues that have arisen since the passage of the original Act."