Irish regulatory body urges UK auditors to prepare for ‘no deal’ Brexit

Ireland’s accounting supervisory body, the Irish Auditing and Accounting Supervisory Authority (the “IAASA”)  has written to the UK’s largest audit firms urging them to begin preparations for a ‘no-deal’ Brexit with a view to minimising any potential disruption to their businesses that could arise from 29 March 2019. The correspondence sets out measures that UK-based firms will need to take to continue operating in Ireland if Britain exits the EU without a deal.

UK-based accountants have until now been able to audit Irish companies, or Irish-based subsidiaries of international companies, with ease. However, the IAASA stated in its correspondence that a hard Brexit would mean that UK-based audit firms would automatically become ‘third country’ auditors in Ireland. This essentially means they would need to register with the Irish authorities as ‘third country’ auditors to be able to continue working there without restriction.  It is not currently possible for UK audit firms to register as ‘third country’ auditors in Ireland, as the UK is still part of the EU. The IAASA has therefore advised UK firms to “prepare and submit draft paperwork” to commence this process so that the necessary approvals can be finalised without delay in the event of a no-deal Brexit. The letter was issued to all UK accounting firms that audit UK companies listed on the Irish stock exchange.