The State's largest accountancy body, the Institute of Chartered Accountants in Ireland (ICAI), is in discussions to merge with the Certified Public Accountants (CPA) body. The ICAI council will meet today to discuss the talks but it is likely to be some months before a final decision on a merger will be taken.

The ICAI has 12,000 members in Ireland and is understood to have initiated merger discussions with the CPA last April. It would not comment on the talks ahead of the council meeting.

The CPA has 2,000 members and already co-operates with the ICAI on issues such as education and training. Its council will meet next week to consider the merger proposal.

Both bodies are based in Ireland, unlike the Association of Certified Chartered Accountants (ACCA) for example, which is part of the British-based industry association. Each has members who work both in accountancy practices and in industry. The merger is designed to help to reshape the professional body to reflect the changes in the business and regulatory environment in Ireland.

While the talks pre-date the recommendations of the Review on Auditing Practices report ordered by the Dail Committee of Public Accounts, its findings were largely expected and will almost certainly have prompted the discussions.

Members of both professional bodies will have to vote to approve the proposed merger although such a vote is understood to be some time away. The ICAI is vehemently opposed to the key recommendation contained in the audit review report which calls for the establishment of an oversight board to monitor how the various accountancy bodies regulate their members.

It is currently conducting a number of inquiries into professional misconduct by its members highlighted in various tribunals. It has also agreed to hold disciplinary hearings in public in the future.

Some industry sources suggest CPA members may be reluctant to join with the ICAI although the merger may offer many benefits to its members.

The ICAI was established in 1888 while the CPA was incorporated in 1943.