The 2023 annual report of the Corporate Enforcement Authority (CEA at www.cea.gov.ie) was published in June 2024, covering the 18 month period from the commencement of the office in July 2022 until 31 December 2023.
During 2022/2023 the CEA received 239 indictable offence reports from companies’ auditors in Republic of Ireland. The nature of the indictable offence reports received by the CEA was quite varied as follows:
- Directors loan breach
- Unqualified auditor
- Inadequate accounting records
- Group accounting standards section 294
- Accounting standards section 291
- False statements in returns
- Approval of financial statements.
Breaches of Section 291 of the Companies Act 2014 had the biggest single concentration of reports which were to do with accounting standards breaches in relation to the preparation and presentation of financial statements in accordance with Irish GAAP and company law.
Indictable offence reports were filed by auditors from the following types of firms:
| Firm | Number | % |
| Big 4 | 189 | 79 |
| Mid-Tier | 17 | 7 |
| Smaller firms | 33 | 14 |
| Total | 239 | 100 |
The CEA commented in its report that (our bold text inserted) ‘one significant contributory factor in the context of auditor reporting is a change of auditor. Specifically, it is not unusual, where there has been a change in statutory auditor for a new auditor, having taken a different interpretation of an accounting treatment to their predecessor, to take the view that the submission of a report is necessary’.
During 2022/2023, the sectors with the greatest volume of reports were:
- the aircraft leasing sector, followed by
- the investment and technology sectors
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
- Our latest CPD Webinar on The Main Changes in Irish GAAP (recorded July 2024)
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
