Audit Committees

Q1. What is an audit committee?

An audit committee is an operating committee of a selected number of the company 's board of directors with the required level of independence to be able to contribute effectively to the committee's oversight function.  

Q2. What responsibilities have the audit committee?

 Generally, the audit committee's responsibilities will include:-

      • inform the board of directors how the statutory audit contributed to the integrity of financial reporting and the audit committee's role in that process;
      • monitor the company's financial reporting process;
      • monitor the effectiveness of the company's systems of internal control, internal audit and risk management;
      • monitor the company's statutory financial statements; and
      • monitor and review the independence of statutory auditor for other services provided to the company.




Q3. What companies must have audit committees?

All Public Limited Companies (PLC's) as well as "public interest entities" must set up an audit committee.  Public interest entities are; companies with shares quoted on a stock exchange, banks and certain other credit institutions and insurance companies.

The board of directors of other large company can decide whether or not to establish an audit committee.  However, they must report their decision and the reason for that decision in the company's financial statements.

Section 167 of the Companies Act 2014 sets out the requirements for Irish registered companies and in addition Regulation 115 of Statutory Instrument No. 312 of 2016 set out the requirements for "public interest entities".




Court Rulings

The Director of Public Prosecutions v Mary Donnelly

Woman pleads guilty to Fraudulent Trading

Acting on the directions of the Director of Public Prosecutions, Gardai from the ODCE this morning arrested a woman and charged her with one count of fraudulent trading contrary to section 297 of the Companies Act 1963 (as amended). The woman was brought before Limerick District Court, where, following evidence of arrest, charge and caution she entered a plea of guilty and was sent forward for sentencing to the next sitting of Limerick Circuit Criminal Court.

Full details of the charge are set out below:

"That you Mary Donnelly, between the 1st day of January 2013 and the 25th day of October 2013, both days inclusive, within the County of Limerick, were knowingly a party to the carrying on of the business of a company Shannonside Audio/Video Limited for a fraudulent purpose namely the dishonest solicitation of payments from Close Invoice Finance Limited trading as Close Brothers Commercial Finance by furnishing false or misleading invoices: Contrary to Section 297 of the Companies Act, 1963 as substituted by Section 137 of the Companies Act, 1990."

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Frequently Asked Questions

ODCE encourages the public to visit the extended FAQs (frequently asked questions) section of website for information before contacting the Office.

What's New

Latest News

The Annual Report of the Director of Corporate Enforcement for 2019 has been published

The Director has issued a Press Statement