An interim board to monitor regulation of the Republic's accountancy professions will be created shortly before legislation to make it a statutory body.

The structure was a key recommendation of the Audit Review Group arising out of auditors' failure to identify and report on tax evasion and fraud highlighted by the DIRT inquiry.

The group's 80 recommendations will be implemented in new legislation and the Tanaiste, Ms Harney, has indicated that some small amendments may be considered.

The two main issues raised in submissions to Ms Harney that will be examined further are the extent to which the new rules will apply to small and medium-sized firms and whether some of the report's recommendations should be implemented through codes of conduct rather than in legislation.

The Institute of Chartered Accountants in Ireland (ICAI), the State's largest accountancy body, while welcoming the key policy recommendations, also stressed the importance of ensuring that the various detailed recommendations are implemented "in a balanced way." Without it, there is a danger of "significant practical and legal issues."

The Tanaiste noted that the comments from the accountancy profession were now much more positive than when the report was first issued.

The Tanaiste will appoint the board members from the accountancy profession, business sector, trade unions, users of financial statements and relevant Government departments. No more than two accountants will be included on the board.

The report recommends that the eight-member board should be able to oversee and initiate disciplinary hearings and impose fines of up to £100,000 (€127,064) where an accountancy body is deemed to have failed to supervise its members.

Accountancy bodies made submissions most of which had been generally positive, Ms Harney said.