The audit of auctioneers

Hi all

I am hoping some of the accountants on here can help me.

I have been approached by a company that operates as an auctioneer and letting agent.

I am wondering if there is a requirement for these company types to be audited? I suppose I am wondering if they are under the same umbrella as banks and insurance companies.

Their previous agent audited them and I cant see why this was done.

I have put the query to my institute but no response back yet and the company are waiting on a response from me.

They are under the audit threshold etc and qualify for exemption with the companies registration office.

Tomorrow

The company itself can be exempt from an audit, but there is a return that you audit as they hold other peoples money and should have a designated clients account. Omnipro (for one) have an upcoming CPD where auctioners are one of the topics.

As said by previous poster, the company can avail of audit exemption provided it meets the criteria. The CRO accepts that they do not come under the same umbrella as insurance companies, banks etc. See [broken link removed]

There is an accountant's certificate under the Auctioneers & House Agents Acts 1947+1967 which must be completed annually due to the auctioneers holding clients accounts and there are audit procedures which must be performed to enable this certificate be issued. While the certificate is called an Accountants Certificate, the certificate must be signed by an person qualified as an auditor under the Companies Acts 1963-2009. The style of report can be downloaded here :-

http://www.google.ie/#hl=en&q=form+of+accountants+certificate&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=1&cad=b
(its the third link down on the page, couldn't link it direct sorry.)

Of course if the auctioneer is also a regulated entity for insurance etc. then an audit of the entire accounts may be required under the Central Bank & Financial Services Authority.

Hi there

Thank you to you both for your replies.

The technical department of Chartered Accountants Ireland have come back to me.

They have said that there is no requirement to audit the company provided they meet the exemption criteria.

They have also said that there is no requirement for an auditor to sign the Accountants Report. The following reference was quoted 'Miscellaneous Technical Statement M01 Auctioneers' and House Agents' Acts 1947 and 1967 '

Thanks again for your replies

Tomorrow

On reading the above technical statement, it appears the advice given to be was incorrect.

It states in the act that the accountants certificate must be signed by an auditor!

Just wanted to clarify!

Tomorrow said:

On reading the above technical statement, it appears the advice given to be was incorrect.

It states in the act that the accountants certificate must be signed by an auditor!

Just wanted to clarify!

Click to expand...

It is a few years now since I had an auctioneer client. I have been trying to locate a copy of M01 to confirm, (is it on internet, can't seem to locate?) but my recollection (as I said in earlier post) was that the accountant's certificate had to be signed by someone qualified to act as auditor. Not necessarily in the capacity as an auditor, but as someone qualified to act as an auditor. I would check again with the technical services in ICAI to be sure what is the correct situation. If, as I believe, it is required to be signed by someone qualified to act as an auditor, then a qualified accountant, but one not holding an audit practising certificate would not be sufficiently qualified to sign the auctioneers accountant's certificate.

Hi Graham

Yes, I believe your recollection is correct but I will confirm with the Institute in the morning.

I got my copy of M01 on chariot, but the relevent extract is:-

7) Any person who acts as an accountant for the purposes of this section when not qualified in the manner
indicated in​

​

​

​

appointment as auditor of a company and is not disqualified under section 162(2) of that Act for being so appointed'

Tomorrow said:

Hi Graham

Yes, I believe your recollection is correct but I will confirm with the Institute in the morning.

I got my copy of M01 on chariot, but the relevent extract is:-

7) Any person who acts as an accountant for the purposes of this section when not qualified in the manner
indicated in​

​

​

​

paragraph (a) or paragraph (b) (as the case may be) of the following subsection shall be
guilty of an offence and on summary conviction thereof shall be liable to a fine not exceeding £100.
(8) In this section 'accountant' means -
(a) where the auctioneer or house agent is a company, a person who is qualified for appointment as auditor
of that company,
(b) in any other case, a person (not being a body corporate or the applicant or a partner or employee of the
applicant) who fulfils either -
(i) the condition mentioned in paragraph (a), or
(ii) the condition mentioned in paragraph (b), of section 162(1) of the Companies Act, 1963, for​

appointment as auditor of a company and is not disqualified under section 162(2) of that Act for being so appointed'

Click to expand...

Yes, that is the part I was thinking of. The auld memory isn't totally shot so.

Tomorrow.. did you get confirmation from your institute in the end ?

Nearly 3.5 years on - have the guidelines changed or are they the same in terms of auctioneeers - If an auctioneer is trading as a company and is under the threshold for audited accounts - are they exempt from doing audited accounts?