Failure to comply with the Companies Act 2003 could see directors subject to fines and penalties. To counter this Deloitte has introduced a new compliance risk software tool to help Irish company directors ensure they are compliant with the new rules.
The company’s local operations have developed a risk-based methodology that takes a top down view of an organisation’s compliance framework as opposed to the many checklist-based bottom-up approaches being used.
The impending implementation of what many regard as the onerous director’s compliance statement provisions of the Companies Act, 2003 is generating demand for a practical workable solution to what could be a complex task.
Failure to comply with the Companies Act 2003 could result in directors being guilty of an offence and being subject to fines and penalties, as well as incurring potential reputational loss.
“Our approach allows organisations to achieve compliance with a focus on the most important risk areas, in a practical and cost-effective way,” said Gerry Fitzpatrick, partner of enterprise risk services at Deloitte.
To support the methodology, Deloitte has developed with a technology partner a compliance risk tool, Abacus Risk, which allows the capture, analysis and reporting of compliance obligations, compliance risks and controls.
The methodology and tools have been developed by a Deloitte cross-functional service team drawn from experienced professionals in enterprise risk management, tax, audit, company law, legal and secretarial and management consulting.
By John Kennedy