The European Scrutiny sub-committee has opted to refer the proposed directive on statutory auditing of annual accounts for further examination, signalling likely additional regulations for Irish auditors.
The committee, chaired by Fine Gael TD Mr Gay Mitchell, has examined European business from an Irish perspective and is charged with either passing proposed directives or referring them for further examination.
This proposed directive has been handed down from the European Parliament and the council on statutory audit of annual accounts. It will now be referred to the Oireachtas Committee on Enterprise and Small Business.
The directive aims to ensure the accuracy of audited accounts and seeks to amend a number of accounting practices across the European Union particularly in the light of high-profile scandals.
It seeks to improve corporate governance, and sections of the proposal relating to the approval of statutory auditors is similar to the measures currently in force in the US.
The proposed directive sets out the requirements to be met by individuals and firms who audit statutory accounts. It also requires members-states to have appropriate investigation, discipline and oversight systems. If adopted, the directive will also introduce a "passporting" regime where auditors will only be subject to home country regulation.
