FOUR bodies which form the Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) were given leave in the High Court yesterday to challenge the Minister for Enterprise and Employment's recognition of the Institute of Incorporated Public Accountants.
Mr Rory Brady SC, for the applicants, said they were challenging the Minister's decision to grant recognition to a body of accountants not previously recognised under the Companies Acts.
Mr Justuice Kelly gave leave to seek judicial review to the Institute of Chartered Accountants in Ireland, the Chartered Association of Certified Accountants, the Institute of Certified Public Accountants in Ireland and the Chartered Institute of Management Accountants, all of which want the decision quashed.
Mr Brady said his clients were concerned about the Minister's failure to consult the four bodies, which represent 15,000 members.
In an affidavit, the secretary of the Institute of Chartered Accountants, Mr Brian Walsh, said the four bodies were long established and well respected and they formed the consultative committee.
They had well developed systems of technical support for their members, for supervising the professional work and conduct of members and for investigating and, where necessary, disciplining members who fell short of these high standards.
It was those standards that constituted the norm of auditors in this jurisdiction and they constituted the standards that the Minister ought to have considered in processing the application of the Institute of Incorporated Public Accountants.
Those standards, particularly in relation to disciplinary matters, required a substantial financial base to ensure their proper functioning.
The Minister at no time consulted any of the applicants about these standards.
To the surprise of the applicants, they were not informed by the Minister of his decision, dated April 12th, to grant recognition.
The CCAB-I had, in December 1991, declined to extend membership to the Institute of Incorporated Public Accountants on the grounds that it was not a recognised body under the Act.
The four applicants protested to the Minister about the decision in a letter dated April 24th last.
It drew attention to the fact that the last filed return of that Institute was for the year ending December 1993 which showed income of £27,257 and tangible assets £196, with a bank balance of £232 and staff costs of £8,523.
Mr Walsh said that, against this background, the Minister could not properly or reasonably have concluded that a body with such limited personnel and financial resources could possibly meet the rigorous professional standards demanded under the Companies Acts.
The applicants were concerned that proper standards were applied to auditors in the State, as any violation of codes of conduct and standards and inadequate discipline of auditors would reflect poorly on auditors generally and on the applicants.
