Dáil Éireann Debate, Thursday - 23 March 2006
22 Mr. Timmins asked the Minister for Enterprise, Trade and Employment his views on the call by the Institute of Chartered Accountants for the audit exemption threshold to be increased; and if he will make a statement on the matter. [11348/06]
Amharc ar fhreagra47 Mr. Gormley asked the Minister for Enterprise, Trade and Employment, further to the Institute of Chartered Accountants of Ireland's call for an upward revision of the audit limit exemption, the number of businesses that would become exempted under such a scheme. [11385/06]
Amharc ar fhreagraI propose to take Questions Nos. 22 and 47 together.
Exemption from statutory audit removes the need for companies to engage an independent external auditor. Following a proposal and recommendation from the task force on small business, audit exemption was first introduced in Ireland under the Companies (Amendment)(No. 2) Act 1999 and came into effect on 21 February 2000 for certain small private limited companies.
In 2003, the Department of Enterprise, Trade and Employment undertook a review of the audit exemption threshold, arising from which the turnover limit was increased from €317,000 to €1.5 million with effect from 1 July 2004. This increase was seen as striking an appropriate balance between competing principles of better regulation and facilitating enterprise. Although this revision is only quite recent, I am conscious that there is a view developing that the level of the limit should be revisited. In addition, I understand that the small business forum, which was established last July to consider in broad terms the current environment for conducting small business in Ireland, has been examining the question of audit exemption. I also understand that this group will report to the Minister in the coming weeks.
In line with Government policy in "Better Regulation", it is appropriate that all regulatory requirements, including audit requirements, should be kept under review in consultation with all relevant parties. The Department of Enterprise, Trade and Employment is currently engaged in a process of reform and consolidation of the Companies Acts in conjunction with the Company Law Review Group. The question of change in the audit exemption limit is a matter I will examine in the context of that process. As regards the number of businesses that would benefit from an increase in the exemption limits, clearly this would depend on any revised limit that might be agreed.
