New legislation on the accounting and auditing profession is to be introduced following the Public Accounts Committee Report into Deposit Interest Retention Tax(DIRT).
The new legislation will establish a new independent regulatory body on a statutory footing. The Irish Auditing and Accountancy Supervisory Authority (IAASA) will supervise the regulation by accountancy bodies of their members.
It will also have statutory responsibility for enforcing accounting standards and will have the power to intervene in the disciplinary processes of accountancy bodies.
In cases where companies are found to be in breach of the new regulations, the IAASA will be given the resources to apply to the courts to compel a company to amend their accounts.
The new rules will also impose additional disclosure requirements on companies in regard to fees paid to their audit firm for services other than the audit itself.
Speaking in regard to the new proposals, the Tánaiste, Ms Harney, said failure to comply with the basic principles of corporate governance would no longer be tolerated.
"Since becoming Minister for Enterprise, Trade & Employment I have tried to identify and root out instances of serious corporate malpractice and to send out the message that failure to comply with the basic principles of good corporate governance will no longer be tolerated," she said.
". . .I want Ireland to be at the forefront of best international practice when it comes to the way in which we run business. The new legislation to govern the audit and accountancy professions represents another huge step along that road."
Ireland's largest companies will also be required to establish audit committees comprising a majority of non-executive directors and the directors of the company will be required to make a positive statement regarding the company's compliance with company law, taxation law and other relevant statutory provisions governing the environment in which they operate.
The IAASA, which will be independent of the Tánaiste and her Department, will have a dedicated professional staff to undertake its new role.
It will also be a source of specialist advice to the Government on auditing and accounting matters including proposals in relation to EU legislation.