An audit committee can play a very important role in a company’s corporate governance policy. Any company in Ireland may set up an audit committee, however the Companies Acts do indicate that ‘public interest entities’ such as banks, insurance companies and companies with shares quoted on a stock exchange must have an audit committee.
Filing Accounts Electronically
Since the 10 March 2014, accounts can be filed electronically with the Companies Registration Office (“CRO”) with signatures in a typed format as the requirement for accounts to contain original handwritten signatures of directors and auditors has now been removed.
Accounts delivered to the Registrar with typed names only are required to be certified by a director and secretary, in either written or electronic form, to affirm the originality of the annexed account documents.
The primary purpose of an audit is to provide company shareholders with an expert, independent opinion as to whether the annual accounts of the company reflect a true and fair view of the financial position of the company and whether they can be relied on. Independence is the main means by which an auditor demonstrates that he can perform his task in an objective manner.
An auditor is an independent professional person who is qualified to audit a company’s financial statements.
What is an Audit?
In brief, an audit is an independent official examination of a company’s financial accounts. The auditors produce a report which is filed in the Companies Registration Office (“CRO”) with the financial statements and annual return.
An auditor is an independently qualified person who is appointed to give shareholders an independent, professional and informed opinion on the financial statements prepared by the directors. An audit can also be of benefit to third parties wishing to engage in business with the company as it helps to assess the reliability of the information provided.