In order for Recognised Accountancy Bodies (RABs) to approve firms and individuals to carry out statutory audits, there are certain criteria that must be met and have been set out in the Companies Act 2014 (as amended).

What are the legal requirements for a firm?

For a firm to be approved, the following requirements apply:

• The firm has a good reputation
• The individuals who carry out statutory audits in the State on behalf of the firm are approved as statutory auditors
• The voting rights in the firm are held by:

1. Those who are eligible for approval in the State or any other Member State as statutory auditors
2. Audit firms who have been approved as statutory audit firms in the State or any Member State
3. A combination of the two
4. More than 50% of the members of the admin or management body of the firm are required to be:
5. Eligible for approval in the State or any other Member State as statutory auditors
6. Audit firms which have been approved as statutory audit firms by the State or any other Member State
7. A combination of the two

What are the legal requirements for an individual?

In order for an individual to gain statutory auditor approval, they need to adhere to the following requirements:

1. The individual must be of good repute
2. The individual must hold an appropriate degree or qualification
3. The individual must have a satisfactory and recognisable level of audit experience

Both individuals and firms also have the additional requirement of holding their own professional indemnity insurance as well as having the proper practice continuity arrangements established.

If you require assistance or advice in relation to any of the above matters, please contact our team on 053 91 000 00 or email [email protected].