Companies Act 2014 section 1580

Exemptions in case of equivalence

Section 1580 allows third-country auditors and audit entities to apply for exemptions from Irish registration and quality assurance requirements where their home country's regulatory systems are deemed equivalent to those in Ireland and the EU.

• A non-EU auditor or audit entity may apply to the Supervisory Authority for an exemption from registration and quality assurance obligations if their home country's oversight systems are equivalent to Irish and EU standards.
• The exemption requires that the European Commission has formally assessed the third country's systems as equivalent under Article 46(2) of the Audit Directive, and that the third country offers reciprocal exemption rights to Irish and EU auditors.
• Where both conditions are met, the Supervisory Authority may rely on the Commission's equivalence decision to disapply or modify the registration and quality assurance requirements, either partially or entirely.
• The Supervisory Authority must notify the European Commission of the key elements of any cooperative arrangements it enters into with the third country's regulatory systems as part of the reciprocity framework.