Welcome to the June edition of Practice Plus, we hope you are all keeping well and safe during this time and getting a break as Summer arrives. This month we advise you of revisions to the ethical standards for auditors effective from July, we notify you of an FRC audit conference to take place this month which explores the link between audit culture and audit quality and we highlight a CPA Ireland partnership with social enterprise Covid Interns.
Ethical Challenges in a Pandemic
For more than a year, the world has been duly tested by the challenges resulting from the COVID-19 pandemic. In response, professional accountants have shown tremendous resilience. However, as jurisdictions around the world progress toward a more hopeful future, the ethics challenges the accountancy profession and stakeholders face are far from over.
Revisions to Ethical Standards for Auditors Effective from July 2021
The Ethical Standard for Auditors (Ireland) 2020 becomes effective on the 15th July 2021. Firms may complete engagements relating to periods commencing before 15 July 2021, in accordance with existing ethical standards (Ethical Standard for Auditors (Ireland) 2017), putting in place any necessary changes in the subsequent engagement period.
Quality Assurance in 2021 continues
Notices will continue to issue to CPA firms who are due a quality assurance review in 2021 to meet the six year cycle required by the Companies Act 2014. Note that the Quality Assurance process continues throughout the Summer and for the rest of the year.
CPD Requirements for Statutory Auditors and New IAASA Guidelines
CPA members, affiliated partners and responsible individuals who are authorised by CPA Ireland as statutory auditors are reminded of their requirements to maintain their competence in audit through CPD. This is a requirement of the Companies Act 2014 and Audit hours completed for a cycle will be reviewed as part of your Quality Assurance Review.
The FRC Audit Conference June 2021
The Financial Reporting Council (FRC) has announced that it will be holding an international conference (virtual) in June entitled ‘Audit Firm Culture: Challenge. Trust. Transformation’.
Reporting RBO Discrepancies
SI 110 of 2019 established the Register of Beneficial Ownership. Regulation 20(3)(b) obliges a designated person carrying out customer due diligence on an entity, to provide notice to the Registrar, if they are of the opinion that a discrepancy exists between the information in the RBO and the information the entity must hold in its internal register of beneficial ownership.
Accountancy Europe and AML Ecosystem
Accountancy Europe recently published an article on building an effective AML ecosystem.
Going Concern and the Auditor
ISA (Ireland) 570, Going Concern, has been updated and is effective for the audits of financial statements for periods commencing on or after 15th December 2019. There are now additional requirements for auditors.
10% Early Bird Discount on CTax until 30th June
2021 marks the 11th year of CPA Ireland's Certified Tax Adviser (CTax) course! We are delighted to offer a 10% Early Bird Discount off the cost of the course - enrol before 30th June 2021 to avail of this discount.
Accountancy Europe Sustainability Risk Management for SMEs
Accountancy Europe have recently published a thoughtful and interesting piece on Sustainability Risk Management for SMEs.
CPA Ireland and Covid Interns Partnership
CPA Ireland is delighted to have created a partnership with successful social enterprise Covid Interns. Covid-19 has negatively impacted both businesses and young people alike. Businesses are facing a redefined commercial landscape while young people have seen their travel plans foiled, internships pulled, and graduate jobs market shrink considerably.
Key Factors in Designing Partner Compensation Models
With many models to choose from, firms must consider a wide range of possible factors when drawing up a partner compensation scheme. Regardless of which model fits best, success will depend on regularly assessing and refining the arrangement to meet the needs of the firm and its partners.
Digitising Your Practice
In an article in Accountancy Plus this month, Alan FitzGerald, explores the benefits of the introduction of new technologies for practitioners and flags the decisions and issues for consideration when on the digital transformation journey.