Annual_Report2014

Annual Report 2014
Irish Auditing & Accounting Supervisory Authority
4
Limiting factors – staff resources
Last year I reported that IAASA’s current level of
resources placed significant limitations on its ability
to fulfil its existing remit. On a positive note, two
vacancies which existed last year have recently been
filled, bringing the current staff numbers, including the
Chief Executive, to 15. Unfortunately, there has been no
increase in the staff numbers sanctioned for our existing
remit. Indeed, as outlined in the Chief Executive’s review,
the European Securities and Markets Authority (‘ESMA’)
has recently published its view that Ireland is not
compliant nor does it intend to comply with the ESMA
enforcement guidelines due to the Authority having
“...a lack of human resources and an inability to recruit
additional personnel without government sanction.” It
is also of interest that when the International Monetary
Fund did a review in 2014 of Ireland’s compliance
with the International Organization of Securities
Commission’s (IOSCO) principles, it also concluded that
“[t]he resources at IAASA are not sufficient for the tasks
assigned” and recommended that “[a]s for the Central
Bank, IAASA should be given additional resources and
greater freedom to contract with staff on appropriate
terms in order to recruit and retain staff with the
necessary expertise”.
Reliable financial reporting and auditing are a bedrock
of commerce and industry and are of fundamental
importance to the performance and international
reputation of the Irish economy. It is of relevance that
small and medium enterprises in Ireland are heavily
reliant on the work of the nearly 34,000 accountants
and auditors that operate within IAASA’s supervisory
remit to provide services such as business and tax
advice, and accounting and auditing services. It is
vital for the development of the Irish economy and
capital markets that the investor community, users
of accountancy services and the wider public have
confidence and trust in the accounting profession,
its outputs and in the monitoring and regulation of
the profession. It is equally important that, where the
monitoring and regulation of the profession by the PABs
is found wanting, there is a well-resourced mechanism
for appropriate regulatory and enforcement action. I
will continue to engage with the Minister on these issues
during 2015.
Changes to the Board’s composition
During 2014 David Martin, Kevin O’Donovan and Gerard
Scully departed from the Board on the expiry of their
respective terms of office. I wish them each well in the
future and I express my appreciation on behalf of the
Board for their service to IAASA over many years. I
would like to warmly welcome the three new directors
who joined in their place, namely David Devlin, Etain
Doyle and Aileen O’Donoghue.
The 2014 Act, when commenced, will bring further
changes to the Board’s composition resulting in a
reduction in the number of directors from 15 to nine
over the coming years. I will work with my fellow
directors to ensure that any governance risks which this
change may present are appropriately addressed.
Concluding remarks
IAASA’s successes and achievements are attributable to
a strong and cohesive Board, the leadership of the Chief
Executive and IAASA’s dedicated and professional staff.
I wish to thank all involved. I would also like to express
my gratitude to the Minister and the management and
staff of his Department for their ongoing support for our
activities.
Professor Brendan Walsh
Chairperson
30 April 2015