Annual_Report2014

Annual Report 2014
Irish Auditing & Accounting Supervisory Authority
12
A list of issuers’ annual and half-yearly financial
statements subject to unlimited scope, focused
or follow-up examination during 2014 is set out in
Appendix 5.
Consistent with earlier years, the financial reports
examined in 2014 were selected on the basis of:
a) Risk profiling – the application of risk
profiling whereby issuers are ranked based
on the combination of the potential for
misstatement and the potential impact of
misstatement on users;
b) Rotational selection – to ensure that all
issuers, irrespective of their assessed risk
profile, are selected for review over a period
of time irrespective of their risk profile or the
outcome of overviews; and
c) Overviews – the outcome of overviews of
periodic financial reports. Such overviews
are undertaken to detect financial reporting
treatments warranting closer examination.
IAASA completed 27 examinations (2012: 32) of
individual financial statements during 2014 and
corresponded with issuers in relation to 12 (2013:
24) of these examinations. A further 3 (2013: 3)
examinations were at an advanced stage at year
end and IAASA was in ongoing correspondence
with these 3 issuers.
A total of 63 (2013: 131) matters were raised with
issuers’ directors during 2014.
The average number of matters raised with issuers
in respect of full scope examinations undertaken
was 7 (2013: 9).
IAASA held face-to-face meetings and/or
conference calls with 10 (2013: 14) issuers during
the year as part of their financial statement
examinations.
Section 5 provides further detail on these thematic
examinations.
In understanding the level and nature of financial
statement review activity undertaken in 2014 and
in comparing it with 2013 activity levels, a number
of factors are relevant, namely:
a) the amount of time dedicated to examining
aspects of financial institutions’ impairment
provisions and disclosures relating to
forbearance measures;
b) the nature of certain examinations with
a greater focus on recognition and
measurement issues requiring additional time
investment in individual examinations;
c) preparation for and attendance at meetings
with issuer representatives; and
d) the relatively higher proportion of follow up
examinations in 2014 resulted, by their nature,
in fewer undertakings being provided by
issuers.
3. Outcomes of 2014 examinations
As a consequence of IAASA’s examinations:
a) 11 (2013: 17) issuers provided undertakings in
respect of future periodic financial reports;
and
b) there were no reports re-filed during 2014
(2013: 1).
For full/unlimited scope examinations a total of 21
(2013: 71) voluntary undertakings were provided
by issuers’ directors to amend future periods’
financial statements and 14 (2013: 38) in respect of
focused examinations and follow-up examinations.
A further 20 (2013: 54) financial statements were
reviewed as part of thematic examinations.