| FGS joins list of PCAOB registered Irish accountants |
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| Farrell Grant Sparks has qualified for registration with US Accounting Standards Board, the Public Company Accounting Oversight Board (PCAOB), bringing the total number of Irish registered firms up to seven. |
Registration with PCAOB is a prerequisite for any firm that provides or wishes to provide auditing services to US listed companies and their subsidiaries based in Ireland and will open up new business opportunities for FGS’ audit department.
To obtain registration with the PCAOB, FGS had to provide detailed assurances and documentation in relation to audit structures and processes, audit quality control and details of staff training procedures.
PCAOB was established under the Sarbanes Oxley Act to oversee the audits of public companies that are subject to securities laws and related matters. The Act exists in order to protect the interest of investors and to further the public interest by preparing informative, accurate and independent audit reports for those companies that the securities of which are sold to, and held by and for, public investors.
PCAOB is also widely expected to lead to expansion of what has become known as the 2nd Channel Advisor market in Ireland. Prior to the Sarbanes Oxley Act, US public companies tended to rely on a single accountancy firm for a broad range of accounting and business advice requirements. This included audits but also extended to taxation, corporate finance, consultancy and company secretarial services. However, as a result of the Sarbanes Oxley Act, the auditors of US public companies can no longer provide these additional services.
This change is seen as necessary to ensure that the auditors’ objectivity is not perceived as being compromised due to the provision of these additional services, many of which are more lucrative to the accountancy firms than just the audit. The other Irish firms registered with the PCAOB are: BDO Simpson Xavier, Ernst & Young, Grant Thornton, KPMG, PricewaterhouseCoopers and UHY O’Connor Leddy & Holmes. |
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| Article appeared in the April 2005 issue.
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