Accountants voice concern

Accountants claim proposed new regulations for the profession will lead to even longer delays in disciplinary hearings and even greater expense.

The warning from the Institute of Chartered Accountants in Ireland (ICAI) comes just days before representatives of all the accounting bodies appear before the Oireachtas to express their reservations about aspects of the Companies (Auditing and Accounting) Bill 2003.

The Bill will, among other things, establish the Irish Auditing and Accounting Supervisory Authority to oversee the regulatory systems of the State's accountancy bodies, the largest of which is the ICAI.

ICAI deputy president Mr Terence O'Rourke says a measure in the Bill forcing any disciplinary action where fines are imposed to go before the High Court "though well intentioned" will lead to delays and additional costs in disciplinary hearings, thereby undermining the process the Bill is supposed to be supporting".

The Blayney inquiry has been examining the behaviour of certain ICAI members as a result of evidence that emerged at the McCracken tribunal. The inquiry was set up in 1997 and has yet to conclude, although a final report is due in the coming months.

The ICAI says the High Court referral requirement would make it more difficult to settle less serious cases, currently expedited through consent orders involving a fine and costs. It says there will be less incentive to settle such cases quickly if the parties know the issue will have to go before the High Court.

"The disciplinary procedures that we are satisfied are working well will be totally undermined," a spokesman for the ICAI said.

The institute is also concerned about provisions that would allow the oversight board annul decisions of the constituent accountancy bodies.