Ethical issues facing auditors – part 2/3

The Ethical Standard for Auditors, issued by the Irish Auditing & Accounting Supervisory Authority set out the basic principles that must be applied when carrying out an audit.

All audit firms must comply with this standard. The standard also addresses certain circumstances where an auditor may be faced with an issue that challenges their ability to act independently. Where possible, the standard seeks to advise audit firms on circumstances that are prohibited and also circumstances that are only allowed after adequate safeguards have been put in place.

Contingent Fees – Audit and non-audit services

Contingent fees are fees which are dependent on a certain outcome (ie. based on a % of turnover or profit).

If an audit firm were to undertake Read more

Posted on October 28, 2017 by Michael O'Halloran

Ethical issues facing auditors – part 1/3

The Ethical Standard for Auditors, issued by the Irish Auditing & Accounting Supervisory Authority set out the basic principles that must be applied when carrying out an audit.

All audit firms must comply with this standard. The standard also addresses certain circumstances where an auditor may be faced with an issue that challenges their ability to act independently. Where possible, the standard seeks to advise audit firms on circumstances that are prohibited and also circumstances that are only allowed after adequate safeguards have been put in place.

Loan staff assignments

Occasionally, an audit firm may provide Read more

Posted on October 26, 2017 by Michael O'Halloran

Companies Act 2017 – Impact on Consolidations and Abridged Accounts

The Companies (Accounting) Act 2017 was signed into law on 9 June 2017 and affects companies filing accounts for periods starting 1 January 2017.  The first wave of companies likely to be affected are companies with years ending 31 December 2017.

Consolidated Accounts

The 2017 Act has now introduced the requirement for holding companies to prepare consolidated financial statements at a lower threshold than was previously required.  While the preparation of consolidated financial statements is recommended to gain a financial understanding of a group as a whole, it will result in higher compliance costs for those companies that are now obliged to prepare and file consolidated financial statements.

The old and new thresholds are set out below. The amounts specified are the combined amounts of the holding company and its subsidiaries.

Companies must meet two out of three of the size criteria in relation to the current and previous financial years i.e. two consecutive years to lose or gain the status.

We are seeing these new limits now bring in Read more

Posted on October 17, 2017 by Paul Leonard

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