THE action by Ireland's four leading accountancy bodies follows a decision by Mr Pat Rabbitte, Minister of State for Commerce and Technology, to grant audit registration status to the Institute of Incorporated Public Accountants (IIPA).
The Government's response to yesterday's court decision will be closely watched by accountants throughout Europe, who could face extra competition from the body. A spokesman for Mr Rabbitte's Department - the Department of Enterprise and Employment said that it would defend its decision to grant the licence.
The registration granted by Mr Rabbitte's section within the Department of Enterprise and Employment allows IIPA members to do audit work for the first time.
Leading accountants say the newly registered auditors could practise elsewhere in the EU if they passed national "top up" examinations.
Accountants do not have to be qualified to practise, but auditors must be certified by a registered body before they can sign off a company's accounts.
The IIPA was established in 1981 and originally applied for a licence to conduct audits in 1982. This application was turned down. The institute reapplied in 1992 and, following a number of submissions, including an educational assessment by the National Council for Educational Awards, it was awarded a licence by the Department.
The application for a review was made by the four main accountancy bodies; the Institute of Chartered Accountants in Ireland, the Chartered Association of Certified Accountants, the Chartered Institute of Management Accountants and the Institute of Certified Public Accountants in Ireland. They have 15,000 members between them.
IIPA has around 300 members. Its vice president, Mr Brendan Dennehy, stressed that his institute "is here to stay". He described the four accountancy bodies as "an old boys' network, afraid of competition".
He said the IIPA was among the first bodies in Ireland to bring in outside people to its disciplinary committees.
IIPA is to spend £250,000 on a headquarters, he said.
This will be financed by a voluntary levy from its members to raise £130,000 and a mortgage which will raise £120,000. It will be not be based in Dublin, he added.
IIPA conducts its business from rented offices at Clifden House, Lower Fitzwilliam Street, Dublin.
