The Institute of Chartered Accountants (ICAI) yesterday welcomed new legislation, due to take effect next week, that relieves auditors of the responsibility of reporting companies' failure to make punctual annual returns.
From September 1st, auditors will no longer be obliged to report a company or its officers to the Office of the Director of Corporate Enforcement (ODCE) for failing to make an annual return. The filings will instead be monitored by the Companies Registration Office.
"This is a small but welcome change in the law," said John Greely, president of the ICAI in a statement. "While the amendment may not be a significant one in legal terms, it will certainly be welcomed by practising accountants."
A spokesman for the ODCE said that currently when auditors report such a failing to them, it is immediately passed on to the Companies Registration Office.
"By removing this requirement of auditors, the government is simplifying the regulation of company filings and leaving the responsibility for monitoring the situation with one institution," said the spokesman.
He said the ODCE was happy that any late reporting would still be caught by the Companies Registration Office.
However, not everyone is happy with the change in the law. "While we welcome the fact that it reduces the administration burden on auditors, we would be very nervous that it simply passes on responsibility to small companies, many of whom are wholly dependent on their auditors," said Pat Delaney, director of the Small Firms Association.
The changes to the Investment Funds, Companies and Miscellaneous Provisions Act were signed into law in June by Minister for Enterprise, Trade and Employment Micheál Martin.
