Irish Auditing Accountancy Supervisory Authority (IAASA) Essay

2081 Words 9 Pages
Introduction
Background
The Irish Auditing and Accountancy Supervisory Authority (IAASA) based at Millennium Park, Naas, Co. Kildare was established pursuant to the provisions of Part 2 of the Companies (Auditing and Accounting) Act, 2003 .The provisions of the act provided for a significant change in the regulatory regime in Ireland.
The accounting profession in Ireland was usually self-regulated up until the late 19th century where in light of multifarious corporate collapses and accounting scandals, the government took measures to safeguard public interest due to political pressures arising as a result of globalization, the exigencies of international financial markets and the local media (O'Regan, P.2010).
IAASA is a State initiative,
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Statutory Functions
Here are some of the statutory functions of IAASA:
• Granting recognition to bodies of accountants for the purposes of audit, to attach terms and conditions to accountancy bodies’ audit recognition.
• To cooperate with the recognised accountancy bodies and other interested parties in developing standards relating to the independence of auditors and to monitor the effectiveness of those standards.
• To supervise the investigation and disciplinary procedures of each prescribed accountancy body.
In July 2010, an EU directive was implemented conferring on IAASA the statutory function to perform quality assurance inspections directly. These functions represented an expansion of the Authority’s existing role .
Limitations of International Regulation
There are numerous regulators & regulations guarding the operations of institutions and accountancy bodies. The government, central banks and financial regulators are all involved. But even with the myriad of international regulations, the problem of corporate failures and accounting scandals has continued to occur.
In literature such failures have been attributed to corporate governance.
Many scholars have implicated corporate governance as one of the main reasons for global crisis (Kirkpatrick, 2009; Yeoh, 2009; Fetisov, 2010).
Indeed “fixing the rules

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