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Cessation of Office by an Auditor & Notifying IAASA

Des O'Neill July 16, 2014

An Auditor may cease to hold the office of Auditor of a Company in a number of ways. These may include:-

  • Resignation from Office by the Auditor pursuant to Section 185 Companies Act 1990;
  • Removal of the Auditor from office by the company (pursuant to Section 160 Companies Act 1963;
  • Retirement by the Auditor at an Annual General Meeting and appointment of another Auditor.
  • A copy of the letter of resignation must be filed at the CRO where an Auditor resigns pursuant to Section 185.

Notification of Cessation of Office to IAASA

Regulation 62 European Communities (Statutory Audits) (Directive) Regulations 201 imposes a requirement on both the auditor and the company to notify IAASA within one month in the event of cessation of office by an auditor.

The regulations are application to all cessations of office since 20th August 2010.

Specified Forms for Notification to IAASA

IAASA have issued specified forms that must be used to notify them within one month of the cessation of office by an Auditor.

Notifications may be submitted by post or email. Notifications by email must include a scanned signed copy of the Notification Form and be sent to [email protected]

The Auditor Notification Form shall be accompanied by:

  • in the case of resignation from office by the auditor, a copy of the notice of resignation served to the company (pursuant to section 185(1) of the Companies Act 1990), stating that there are/are not circumstances in connection with the resignation which should be brought to the notice of members or creditors of the company; or
  • in the case of removal of the auditor from office by the company (pursuant to section 160(5) of the Companies Act 1963), a copy of any representations made to the company by the auditor, in relation to the Ordinary Resolution of Members removing the auditor, except where such representations were not sent to the members of the company in consequence of a court application.

The Company Notification Form shall be accompanied by:

  • in the case of resignation from office by the auditor, a copy of the notice of resignation served to the company pursuant to section 185(1) of the Companies Act 1990), stating that there are/are not circumstances in connection with the resignation which should be brought to the notice of members or creditors of the company; or
  • in the case of removal from office of the auditor by the company (pursuant to section 160(5) of the Companies Act 1963):

a copy of the Ordinary Resolution of Members removing the auditor; and

a copy of any representations made to the company by the outgoing auditor in relation to the intended resolution, except where such representations were not sent to the members of the company in consequence of a court application.

Where an Auditor ceases to hold office from a group of companies and details of the cessation are the same for each company within the group, then a single Auditor Notification form and a single Company Notification Form in respect of the parent company is required to be submitted to IAASA with a List of Group Companies annexed to the Form. A softcopy of the List of Group Companies in Excel Format should be emailed to [email protected]

Incorporation of an Audit Practice

Where an Auditor transfers its business from a sole practice or partnership to a Limited Company, the auditor must notify IAASA on a specified “Notification of Auditor Incorporation Form”. A list of clients affected from the change shall be attached to the form. A softcopy of the list shall be emailed to IAASA also.

Exceptions from notification to IAASA

Notification to IAASA is not required by either the company or the Auditor for the following:-

  • The company availing of audit exemption
  • The company going  into liquidation
  • The company being struck off the Companies Register

Should you have any questions in relation to this article or should you have any Company Law or Company Secretarial queries please contact John Murphy on 053 910 0000, [email protected]