Contents of, and Standards for, the administration of the Aptitude Test under Regulation 30 of the European Communities (Statutory Audits) (Directive

Transcription

1 Contents of, and Standards for, the administration of the Aptitude Test under Regulation 30 of the European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010

2 Contents Page number Preface 1 1. Becoming a statutory auditor in Ireland 2 2. Application process for the aptitude test 3 3. Contents of the aptitude test 4 4. Application for Exemptions from the aptitude test 5 5. Glossary of terms 6 Appendices Appendix 1: Appendix 2: Appendix 3: Aptitude test application form List of Recognised Accountancy Bodies Contact details

3 Preface The purpose of this document is to set out the contents of, and the standards for, the administration of the aptitude test under Regulation 30 of European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010 ( SI 220 of 2010 ). The document has been drafted and agreed by the six Recognised Accountancy Bodies ( RAB s). As set out herein, the Aptitude test process will be administered on behalf of the RABs by Chartered Accountants Ireland. Any reference in this document to a Regulation is to the Regulations set out in SI 220 of

4 1. Becoming a statutory auditor in Ireland An individual who is an EU member state auditor or a third-country auditor may apply to a RAB for approval as a statutory auditor in Ireland under Regulation 19 of SI No. 220 of Such approval may be as an individual or to join an existing statutory audit firm. In order to be eligible for appointment as a statutory auditor, a member state auditor must first be approved as a statutory auditor in a member state and a third country auditor must be entitled to carry out audits in that third country. Additionally, a member state auditor and a third country auditor must pass an aptitude test. Passing the aptitude test does not immediately confer statutory auditor status on you, but makes you eligible to apply to a RAB for auditor status. Once Chartered Accountants Ireland has provided you with evidence that you have passed the aptitude test, you may apply to a RAB for approval as a statutory auditor under Regulation 19. For a Member state auditor this application for approval would be under Regulation 24(b). For a third country auditor, the application would be under Regulation 24 (c). In addition, Regulation 112 (2) states that A third country auditor shall not be approved under paragraph (1) [of this regulation] unless reciprocal arrangements with the third country in question are in place, that is to say arrangements that enable a. by virtue of the law of that third country, and b. on fulfilment by the statutory auditor concerned of requirements no more onerous than these specified by this Regulation and Chapter 2 of Part 4 for the third country auditor s approval under paragraph (1) [of this regulation], a statutory auditor to carry out audits in that third country. This means that if it is not possible for an Irish statutory auditor to become registered in the third country on a reciprocal basis, then it will not be possible for an auditor from that third country to become a statutory auditor in Ireland. Each RAB has its own application and approval procedures. Once you apply for statutory auditor approval you will be advised of these procedures and of your continuing responsibilities. The application process will include an undertaking to abide by all rules and regulations relevant to statutory auditors within that RAB. This will include: maintaining appropriate professional indemnity insurance; maintenance of competency through undertaking continuing professional development; notification to the RAB of certain matters; submit to monitoring by the RAB; payment of an annual fee; and other matters as set out in the RABs rules. Contact details for the RABs to which you may apply for approval are set out in Appendix 3. 2

5 2. Application process for the aptitude test The relevant law governing the aptitude test is set out in Regulation 30. Regulation 30(1) states: Subject to paragraph (2), a Member State auditor or third country auditor applying for approval as a statutory auditor in the State is required to sit and pass an aptitude test to demonstrate his or her knowledge of the enactments and practice that are relevant to statutory audits in the State. In limited circumstances, a member state auditor or third country auditor may, under the provisions of Regulation 30 (2), be granted an exemption from passing the aptitude test. Please refer to Section 4 for further information on the exemption process. A member state auditor or a third-country auditor (Applicant) applying for the aptitude test as required under Regulation 30(1) is required to complete the Application Form set out in Appendix 1 and submit it to Chartered Accountants Ireland at the address provided therein. Chartered Accountants Ireland may require you to provide additional information during the application process. Details on examination fees, application deadlines and examination timetables are set out at 3

6 3. Contents of the aptitude test The aptitude test in Ireland will consist of two written examinations, one in corporate and business law and the second in tax law insofar as they relate to audit. The written examinations will be overseen by a panel of experts nominated by the RABs and administered by Chartered Accountants Ireland, who may charge a fee (as specified by the Minister) for the administration of the Aptitude Test. Details on the individual papers can be obtained at: Corporate and Business law: (C A Proficiency 1, Law) Syllabus/Overview-CA-Proficiency-1/ Tax Law: (C A Proficiency 2, Taxation II) Syllabus/Overview-CA-Proficiency-2/ Study material is also available for both examinations from Chartered Accountants Ireland. The examinations are in English. The examiners will make due allowance for non-native English speakers and weaknesses in spelling or grammatical construction will not be penalised, as long as the examiners are satisfied that an applicant s intention and meaning are clear beyond ambiguity. Applications will be subject to the same rules and regulations applicable to candidates sitting any of the professional examinations of Chartered Accountants Ireland. 4

7 4. Application for Exemptions from aptitude test under Regulation 30(2) Regulation 30(2) allows for an individual, who is a member state auditor or a third country auditor, to be granted an exemption from the requirement to pass an aptitude test. Exemptions will only be considered where an applicant can demonstrate that s/he has passed an examination, which is externally examined and which is equivalent to the two examinations comprising the aptitude test, i.e. in corporate and business law and in tax law, in so far as they relate to audit in Ireland. It is anticipated that most applicants will be required to demonstrate this knowledge through the aptitude test and that the granting of any exemption will only be considered on an exceptional basis. This reflects the guidance issued by the Irish Auditing & Accounting Supervisory Authority ( IAASA ) in accordance with Regulation 30(3). To ensure consistency of application, the consideration and approval of any exemptions will be administered by Chartered Accountants Ireland on behalf of the RABs. An applicant who wishes to be considered for an exemption under Regulation 30 (2) will be required to provide such information as Chartered Accountants Ireland deems necessary. Applicants should contact Chartered Accountants Ireland to discuss this further. 5

8 5. Glossary of Terms Chartered Accountants Ireland: The Institute of Chartered Accountants in Ireland, trading as Chartered Accountants Ireland. EEA State: A state that is a contracting party to the EEA Agreement. Irish Auditing and Accounting Supervisory Authority (IAASA): The body established under the Companies (Auditing & Accounting) Act 2003 and recognised as the competent authority with supervisory and other functions in accordance with the provisions of SI No.220 of Member State: A Member State of the European Union or an EEA State. Member State Auditor: An auditor approved in accordance with the Directive by a competent authority of another Member State to carry out audits of annual or group accounts as required by Community law. RAB: A Recognised Accountancy Body, which is a body recognised as a competent authority in accordance with the provisions of SI No. 220 of (Appendix 2 sets out a list of the RABs) Regulation: Any reference in this document to a regulation is to the regulations set out in SI 220 of SI No. 220 of 2010: European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations Third Country: In the context of this Guidance a Third Country is a country which is not a Member State or part of a Member State. Third Country Auditor: A natural person who is entitled under or by virtue of the laws, regulations or administrative provisions of a third country to carry out audits of the annual or group accounts of a company incorporated in that third country. 6

9 Appendix 2: List of Recognised Accountancy Bodies (RABs) Association of Chartered Certified Accountants (ACCA) Institute of Chartered Accountants in England and Wales (ICAEW) Institute of Chartered Accountants in Ireland / Chartered Accountants Ireland (ICAI / CAI) Institute of Chartered Accountants of Scotland (ICAS) Institute of Certified Public Accountants in Ireland (ICPA) Institute of Incorporate Public Accountants (IIPA) Contact Details for each of these bodies are set out in Appendix 3

10 Appendix 3: RABs Contact Details For Regulation 30 - Aptitude Test applications Recognised Accountancy Body Chartered Accountants Ireland Contact Details Regulation 30 - Examinations Department Chartered Accountants Ireland CA House Pearse Street Dublin Ireland. For application for approval as a statutory auditor after passing or being exempted from the Aptitude test by CAI Recognised Accountancy Body Association of Chartered Certified Accountants (ACCA) Institute of Chartered Accountants in England and Wales (ICAEW) Chartered Accountants Ireland Institute of Chartered Accountants of Scotland (ICAS) Institute of Certified Public Accountants in Ireland (ICPAI) Institute of Incorporated Public Accountants (IIPA) Contact Details Customer Services, ACCA, 2 Central Quay, 89 Hydepark Street, Glasgow G3 8BW, United Kingdom Regulatory Support Section, ICAEW, Metropolitan House, 321 Avebury Boulevard, MILTON KEYNES MK9 2FZ, United Kingdom Chartered Accountants Regulatory Board 32 Linenhall Street Belfast BT2 8BG CA House 21 Haymarket Yards, Edinburgh EH12 5BH United Kingdom 17 Harcourt Street, Dublin 2, Ireland Heather House, Heather Road, Sandyford, Dublin 18, Ireland