Best Accounting & Auditing Lawyers in Passage West

About Accounting & Auditing Law in Passage West, Ireland

Accounting and auditing rules that apply in Passage West are set at national and European Union level and apply across Ireland. Businesses in Passage West must keep proper books and prepare financial statements that reflect their true financial position. Many companies can claim an audit exemption if they meet size thresholds and file on time, but others must undergo a statutory audit by a registered auditor. Oversight sits with Irish regulators such as the Irish Auditing and Accounting Supervisory Authority and the Corporate Enforcement Authority, with tax compliance supervised by Revenue. Local factors still matter, including business rates administered by Cork County Council and supports from the Local Enterprise Office. Getting compliant early can protect directors, reduce costs, and prevent penalties or loss of audit exemption.

Why You May Need a Lawyer

Accountants handle day-to-day finance and compliance, but legal input is often needed when accounting and auditing issues create regulatory, contractual, or dispute risks. You may benefit from a lawyer if you face any of the following:

- Setting up or restructuring a company, choosing accounting frameworks, and documenting shareholder agreements that affect financial reporting and dividends.

- Determining whether you qualify for audit exemption and the legal implications of late filing or complex group structures.

- Responding to a Revenue audit or investigation, including negotiation, appeals, and voluntary disclosures.

- Managing director duties, related party transactions, loans to directors, and approval requirements under the Companies Act 2014.

- Rectifying missed Companies Registration Office deadlines, applying to court for time extensions, or restoring a company struck off the register.

- Dealing with disputes about accounts, valuation, or alleged misstatements with shareholders, lenders, or suppliers.

- Handling auditor independence issues, limitations of liability, audit tenders, and engagement terms.

- Navigating sector rules for charities and regulated entities, including audit thresholds and reporting to the Charities Regulator or Central Bank of Ireland.

- Data protection, retention, and access to accounting records under GDPR and the Data Protection Act 2018.

- Forensic investigations, suspected fraud, whistleblowing, and protected disclosures.

Local Laws Overview

- Companies Act 2014: Core company law for record keeping, financial statements, audits, directors duties, and filings. It sets out the requirement to keep adequate accounting records, prepare annual financial statements, and file an annual return with the Companies Registration Office. Late filing can trigger loss of audit exemption and penalties.

- Accounting frameworks: Irish companies may use Irish GAAP or IFRS as adopted by the EU. Common choices are FRS 102 for most SMEs and FRS 105 for micro entities. Listed groups usually use IFRS. The correct framework depends on size, listing status, and group policy.

- Audit requirements: Many small private companies can claim audit exemption if they meet size thresholds set by law and file on time. Public interest entities and certain larger or regulated entities require a statutory audit. If a company files its annual return late, it generally loses audit exemption for the following two financial years unless it secures a court extension within time. Auditors must be registered with a recognised body and follow ISA Ireland and ethical standards.

- Oversight and enforcement: The Irish Auditing and Accounting Supervisory Authority oversees audit regulation and supervises recognised accountancy and audit bodies. The Corporate Enforcement Authority investigates and enforces company law, including accounting record offences and director compliance. The Companies Registration Office administers filings and strike-offs.

- Tax compliance: The Revenue Commissioners administer VAT, PAYE, corporation tax, and income tax. Businesses must maintain tax records and make timely returns and payments. Revenue can examine records, carry out audits, and raise assessments. Record retention is typically at least six years.

- Anti-money laundering: Accountants and auditors are designated persons under the Criminal Justice Money Laundering and Terrorist Financing Acts and must carry out customer due diligence, risk assessments, and suspicious transaction reporting. Businesses should expect AML checks when engaging professional firms.

- Data protection: Financial records often contain personal data. GDPR and the Data Protection Act 2018 require a lawful basis for processing, security, limited retention, and appropriate access controls.

- Sector specific rules: Charities, credit unions, insurance firms, and other regulated entities have additional reporting and audit obligations. The Charities Regulator sets accounting and reporting rules for charities, including thresholds for audit or independent examination.

- Local considerations in Passage West: Businesses operate under Cork County Council for rates and permits. The Local Enterprise Office in South Cork provides grants and mentoring that may influence accounting disclosures. Companies with a registered office in County Cork generally apply to the local District Court for time extensions to file annual returns when seeking to preserve audit exemption.

- Note on thresholds and deadlines: Thresholds for audit exemption and small or micro status, as well as filing rules, can change. Always confirm current limits and dates with your advisor or the Companies Registration Office.

Frequently Asked Questions

What records must my business keep and for how long

Companies and sole traders must keep accurate books that explain transactions, show financial position, and enable proper financial statements and tax returns. Records include invoices, bank statements, contracts, payroll, and VAT workings. Revenue generally requires retention for at least six years. Companies must also keep statutory registers and minutes. If you keep records outside Ireland, you must ensure they are accessible in the State.

Do all companies in Passage West need an audit

No. Many small private companies can claim an audit exemption if they meet size criteria set by law and have filed their annual return and accounts on time. Some entities always require an audit, such as public interest entities and certain regulated firms. Late filing typically removes audit exemption for the next two years unless a timely court extension is obtained.

What happens if I miss my Companies Registration Office filing deadline

Late filing triggers daily penalties, loss of audit exemption for the next two financial years, and risk of strike off. Directors can also face enforcement action. You may apply to the District Court for more time to file for the year in default. Act quickly, as timing is critical for preserving audit exemption.

Which accounting standards should my company use

Most Irish SMEs use FRS 102. Very small entities may qualify for FRS 105 micro entity accounting. Listed groups and some others use IFRS as adopted by the EU. The right choice depends on your size, financing, and stakeholder needs. Changing frameworks has legal and tax impacts, so get professional advice before switching.

Who regulates auditors and how do I know my auditor is authorised

IAASA oversees the audit regulatory system and supervises recognised audit bodies such as Chartered Accountants Ireland, ACCA, and CPA Ireland. A statutory auditor must be registered and hold an audit practising certificate. You can ask your auditor for confirmation of their registration and the body that supervises them.

What are director duties around accounts and distributions

Directors must ensure proper books are kept, approve accounts that give a true and fair view, and file on time. They must only pay dividends from distributable profits and follow rules on loans and related party transactions. Unlawful distributions or failure to keep records can lead to personal liability and restriction proceedings.

Do sole traders or partnerships need audited accounts

Generally no, unless required by a lender, regulator, or contract. They must still keep proper books and file tax returns with Revenue. Some professional bodies or grant authorities may require independently reviewed or audited accounts for funding or certification.

How does a Revenue audit work

Revenue selects cases based on risk or random selection. You will receive a notice describing the scope and requested records. You can make a prompted or unprompted disclosure to mitigate penalties. A lawyer can help manage communications, protect legal privilege, and negotiate settlements or appeals if needed.

Can my company limit the auditor's liability

Irish law allows certain liability limitation agreements with auditors if they meet fairness tests and are approved by shareholders. The terms must comply with the Companies Act and professional standards. Independent legal advice is recommended when drafting or approving such agreements.

How do we change auditors

Directors or shareholders can propose a change, but you must follow statutory procedures. The outgoing auditor has rights to make representations and to be heard at the meeting. You must file required notices with the Companies Registration Office and ensure continuity of audit for statutory deadlines. Handle independence checks and engagement terms with the incoming auditor early.

Additional Resources

- Irish Auditing and Accounting Supervisory Authority

- Companies Registration Office

- Corporate Enforcement Authority

- Revenue Commissioners

- Chartered Accountants Ireland

- ACCA Ireland

- CPA Ireland

- Data Protection Commission

- Charities Regulator

- Central Bank of Ireland

- Local Enterprise Office South Cork

- Cork County Council Rates Office

Next Steps

- Identify your obligations: Confirm whether you need an audit, which accounting framework applies, and your filing and tax deadlines. Map out key dates over the next 12 to 18 months.

- Gather documents: Organise bank statements, invoices, payroll, contracts, prior financial statements, CRO filings, and tax returns. Ensure your statutory registers are up to date.

- Speak to a professional: Engage a chartered accountant for bookkeeping, accounts preparation, and, if needed, statutory audit. Consult a solicitor experienced in company and tax law for issues involving director duties, late filings, disputes, court applications, or regulatory investigations.

- Address risks early: If a deadline has been missed, act promptly to seek a District Court extension where appropriate and to avoid losing audit exemption. If Revenue has contacted you, consider whether a disclosure can reduce penalties.

- Review governance: Update engagement letters with your auditor or accountant, review internal controls, and set a timetable for year end close, audit, and filing to prevent last minute issues.

- Use local supports: Contact the Local Enterprise Office in South Cork for grants, mentoring, and training that may require financial statements or reviews. Coordinate with Cork County Council on rates and certificates that may interact with your financial records.

- Keep thresholds current: Verify audit exemption and size thresholds and any changes to filing rules before year end planning. Laws and limits can change and may affect your compliance strategy.

This guide provides general information for businesses in Passage West. For advice on your circumstances, consult a qualified accountant and an Irish solicitor.