Companies Act 2014 section 1548

Rotation of statutory auditor and audit firms in case of public-interest entities - extension

Section 1548 deals with the process by which a public-interest entity may, in exceptional circumstances, apply to the Supervisory Authority (IAASA) for an extension of up to two years to reappoint its existing statutory auditor or audit firm beyond the normal mandatory rotation period.

• A public-interest entity may request an extension of up to two years to reappoint its statutory auditor or audit firm, but only under exceptional circumstances such as mergers, acquisitions or special investigations.
• The Supervisory Authority may grant the extension as requested, grant a shorter extension, or refuse the extension entirely, and it decides what constitutes exceptional grounds.
• The Supervisory Authority may seek additional information from the entity before making its decision, and any extension granted is on an exceptional, case-by-case basis and must be published on its website.
• Where the Supervisory Authority refuses to grant an extension, it must provide reasons for its decision to the public-interest entity.

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