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Brexit – how will the auditors cope?

24 January 2019

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Read Andrea Williams’ latest Brexit blog on how the auditors will cope, should the UK leave the EU without a deal.

There’s still little else on the UK news agenda other than Brexit, and speaking to my colleagues here at Intertrust, it’s a situation replicated across Europe. As a truly global organisation, we’re fortunate that our multi-jurisdictional presence means Brexit will have little impact on day-to-day operations and we’re also working to ensure that our clients can continue to operate seamlessly regardless of the outcome of any future votes.

One of the issues under consideration that Sue Abrahams, UK Head of Client Accounting has been raising, is how UK plcs with notes listed on the Irish stock exchange, will be audited. To date, passporting has meant that UK auditors can sign off accounts for these companies, and the EU and UK have agreed that the transition period will ensure this protocol continues. However, should the UK leave without a deal, the Irish regulator has stated that UK auditors will be unable to sign an audit report for an Irish incorporated entity and as a consequence, notes could be delisted and suspended.

The issue is, auditors plan and allocate resources many months in advance and there simply aren’t enough auditors in the EU to expedite all these company audits ahead of the 29 March leaving date.

Intertrust are proactively engaging with the auditors and lobby groups to ensure the best possible outcomes for our clients. If this may impact your business, please contact Sue Abrahams as planning ahead is certainly key to ensuring continued compliance.

To read Andrea’s first blog ‘To Brexit & Beyond’ click here.