Notification on cessation of office by an auditorIn accordance with Regulation 62 of SI No. 220 of 2010 (European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010), with effect from 20 August 2010, both the auditor and company must notify IAASA within one month in the event of the cessation of office by an auditor, whether by resignation or removal from office. In reviewing these FAQs, you may also wish to reference:
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FAQsFrom what date must auditors and companies notify IAASA of cessation of office by an auditor?With effect from 20 August 2010, both the auditor and company must notify IAASA within one month in the event of the cessation of office by an auditor, whether by resignation or removal from office. What are the auditor’s obligations and what format should the Auditor Notification take?Within one month of ceasing to hold office, the outgoing auditor shall notify IAASA, using the Auditor Notification Form that the auditor has ceased to hold office. The Auditor Notification Form shall be accompanied by: • in the case of resignation from office by the auditor, a copy of the notice of resignation served to the company (pursuant to section 185(1) of the Companies Act 1990), stating that there are/are not circumstances in connection with the resignation which should be brought to the notice of members or creditors of the company; or • in the case of removal of the auditor from office by the company (pursuant to section 160(5) of the Companies Act 1963), a copy of any representations made to the company by the auditor, in relation to the Board resolution removing the auditor, except where such representations were not sent to the members of the company in consequence of a court application. What are the company’s obligations and what format should the Company Notification take?Within one month of the auditor ceasing to hold office, the company shall notify IAASA, using the Company Notification Form that the auditor has ceased to hold office. The Company Notification Form shall be accompanied by: • in the case of resignation from office by the auditor, a copy of the notice of resignation served to the company pursuant to section 185(1) of the Companies Act 1990), stating that there are/are not circumstances in connection with the resignation which should be brought to the notice of members or creditors of the company; or • in the case of removal from office of the auditor by the company (pursuant to section 160(5) of the Companies Act 1963): o a copy of the Board resolution removing the auditor; and o a copy of any representations made to the company by the outgoing auditor in relation to the intended resolution, except where such representations were not sent to the members of the company in consequence of a court application. Must a separate Notification Form be submitted for each company within a group of companies from which an auditor has ceased to hold office?No. Where an auditor has ceased to hold office from a group of companies as defined by Irish Company Law (i.e., prepared in accordance with section 151-155 of the Companies Act 1963), and the details of the cessation (date, reason etc.) are the same for each company within the group, then a single Auditor Notification Form and a single Company Notification Form in respect of the parent company are required to be submitted to IAASA. These forms must be accompanied by a list of the group companies from which the auditor has ceased to hold office, using the “List of Group Companies” sheet in the Auditor Notification Form or Company Notification Form, as appropriate. Additionally, a softcopy of the “List of Group Companies” in Excel format should be emailed to notifications@iaasa.ie. Are there any exceptions to the requirement to notify IAASA on cessation of office by an auditor?Yes. Notification to IAASA is not required, by either the auditor or the company, where the cessation of office by an auditor is due to a company: • becoming audit exempt; • being liquidated; or • being struck off the Companies’ Register. Is notification to IAASA required on incorporation of an auditor?Yes. Where an auditor transfers clients from an unincorporated audit practice to an incorporated audit practice, the auditor must submit a Notification of Auditor Incorporation Form to IAASA. A listing of clients affected shall be attached to the letter, using the “Client List” sheet in the Notification of Auditor Incorporation Form. Notifications to IAASA may be submitted in batches as clients are transferred to the incorporated audit practice i.e. it is not necessary to transfer all clients simultaneously. Additionally, a softcopy of the “Client List” sheet in Excel format should be emailed to notifications@iaasa.ie. May notifications be submitted by email?Yes. Notifications may be submitted by post or email. Notifications by email must include a scanned copy of the signed Notification Form and should be sent to notifications@iaasa.ie. Is notification to IAASA required where an auditor ceases to hold office in respect of a company registered outside the Republic of Ireland?No. Notification to IAASA on cessation of office by an auditor is only required in respect of companies registered in the Republic of Ireland. Consequently, where an auditor resigns or is removed as auditor from a group of companies, notification to IAASA is not required in respect of group companies registered outside the Republic of Ireland. |
Irish Auditing & Accounting |
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