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The Irish Auditing and Accounting Supervisory Authority sent the letters this week outlining measures that UK-based firms will need to take to continue operating in Ireland if Britain leaves the EU without a deal.
The possibility of a no-deal Brexit has increasingly alarmed Britain’s business community — including the accounting sector— as the March 29 deadline for Britain’s departure from the EU draws closer.
UK-based accountants have until now been able to audit Irish companies, or the Irish-based subsidiaries of international companies, with ease. It is not uncommon for the signing partner on a set of Irish accounts to be based in the UK.
However, the Irish audit watchdog said in its letter that a hard Brexit would mean UK-based audit firms would automatically become “third country” auditors in Ireland. This means they would need to register with the Irish authorities as “third country” auditors to be able to continue working there with ease.
You just don’t know what the rules will be Senior figure at a Big Four firm 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 Irish regulator has therefore advised UK firms to “prepare and submit draft paperwork” to begin this process now so that the necessary approvals will be ready as quickly as possible after March 29.
The letters, seen by the Financial Times, have gone to all UK accounting firms that audit UK companies listed on the Irish stock exchange. The Irish audit issue is thought to affect the 20 largest audit firms in the UK. [...]
Full article on Financial Times (subscription required)