IN PRACTICE
In Practice News
In Practice News
AML Thematic Review 2024
In Quarter 1 2024, a sample of designated persons for Anti-money laundering (AML) purposes will be selected by CPA Ireland’s QA team, for an AML review in order to assess their compliance with the relevant legislation, which includes but is not limited to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended.  Common weaknesses identified in these reviews will be summarised and issued in Practice Plus to assist all designated persons comply with their obligations in this regard. Depending on the results, CPA may decide to conduct further reviews in 2024.

Per Bye Law 15, a designated person is;

“The Institute of Certified Public Accountants in Ireland (the Institute) is a competent authority under S.60 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended, (the Act) and is responsible for the supervision of its members and Firms who are considered to be designated persons under the Act.

A member or firm is considered to be a designated person only in respect of those activities or services that render the person a designated person. Typically for the purposes of a member of the Institute such services include audit, external accountancy, tax adviser, trust or company services.”

For further information regarding AML, please consult CPA Ireland’s AML technical resource. This acts as a central point bringing together all guidance in a single location, to assist firms. It is a live resource which is regularly updated as new guidance is published.

IAASB’s New Standard for Audits of Less Complex Entities: A Game-Changer for the Accounting World
The International Auditing and Assurance Standards Board (IAASB) in December 2023 issued a new standard that has significant implications for the accountancy profession, especially accountants and auditors who work with small and medium sized entities. International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE, is tailored to meet the specific audit needs of smaller and less complex businesses and organizations.

The ISA for LCE: An Overview

The ISA for LCE is not just an amendment or an addendum; it is a new standalone global auditing standard. Build on the foundation of the globally well-respected and widely adopted International Standards on Auditing (ISAs), it aims to provide the same level of assurance: reasonable assurance, for eligible audits. The significance lies in its proportionate and tailored approach to the unique audit needs of less complex entities.

This new standard addresses the challenges faced by auditors that audit less complex entities, recognizing the focused expectations stakeholders have for an audit of a less complex entity. By doing so, the ISA for LCE aims to enhance confidence in financial reporting and promote global consistency in applying auditing standards to these entities, thereby reducing the risk of jurisdictional divergence.

The ISA for LCE is set to be effective for audits of financial statements of less complex entities starting from December 15, 2025, with early adoption permitted.However, before the standard can be used in jurisdictions, each jurisdiction must decide whether to adopt it.

The introduction of the ISA for LCE marks a pivotal moment in the evolution of auditing standards, catering specifically to the needs of less complex entities. As jurisdictions consider its adoption, the global accountancy profession eagerly anticipates the positive impact this standard will have on audits of small and less complex businesses worldwide.

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8 Useful tips to succeed in your Quality Assurance Review
Have you received a recent Quality Assurance review notification from CPA and it is filling you with a sense of dread?

The good news is not to worry as we are here to help!

In the year 2022, 70% of all firms reviewed, received a satisfactory grade.

Here are some valuable tips to help you feel less stressed in the lead up to your review and achieve that satisfactory grade.

  1. ISQM 1
  2. CPD Requirements for statutory auditors
  3. Audit Procedures
  4. Audit Evidence and Documentation
  5. Key Issues Identified in QA Reviews 2022
  6. Quality Assurance Website
  7. Technical Queries
  8. Quality Assurance Executive
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