The following section provides an overview of the primary responsibilities and duties of auditors and/or accountants under the Companies Acts under secondary legislation and related case law. For further details, please see the ODCE Decision Notices below.
Duty to Provide an Audit Report
The principal duty of the auditors to a company is to report to the members of the company on the financial statements examined by them. The auditors' report must be read at the AGM and should be made available to every member of the company. Section 160 Companies Act, 1963 as amended by section 183 Companies Act, 1990.
Duty to Report Failure to Maintain Proper Books of Account
Where auditors form the opinion that the company being audited is contravening, or has contravened, its obligations to maintain proper books of account, they are obliged to serve a notice on the company informing it of that opinion. Subsequently the auditors may be required to notify this to the Registrar of Companies, who will in turn notify the Director of Corporate Enforcement.
Section 194 Companies Act, 1990 as amended by section 74 Company Law Enforcement Act, 2001.
Duty to Report Indictable Offences
As a result of the Company Law Enforcement Act, 2001, auditors are now required to make a report to the Director of Corporate Enforcment where during the course of, and by virtue of, carrying out an audit, information comes into their possession which leads them to form the opinion that the company, or an officer or agent of it, has committed an indictable offence under the Companies Acts. Section 194(5) Companies Act, 1990 as inserted by section 74 Company Law Enforcement Act, 2001
Duty to Exercise Professional Integrity
Auditors are under a duty to carry out the audit with professional integrity. In preparing their report, auditors must exercise the skill, care and caution of a reasonably competent, careful and cautious auditor. Section 193(6) Companies Act, 1990
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