The Mutual Recognition Agreement provides a streamlined route for ICAS members to achieve the US CPA and licensure, and US Certified Public Accountants to attain the CA designation and UK audit signing rights.

The deal simplifies and reduces the exam requirements for both ICAS members and licensed CPAs. ICAS members will now only have to pass the International Qualification Exam (IQEX) and satisfy relevant state board requirements to become a US CPA and US CPAs now need only complete the international qualification pathway, a two-year training contract and have UK audit experience.

UK accountants looking to take advantage of the deal must have the following:

• ICAS membership;
• undergraduate degree;
• ICAS CA Qualification Program; and
• two years post-qualification relevant practical work experience.

A US CPA must have the following:

• undergraduate degree;
• uniform CPA Exam;
• State Board experience requirements for licensure; and
• two years post-qualification practical work experience.

The agreement has been approved by all governing bodies, which in the UK are the Financial Reporting Council (FRC) and ICAS Council.

AICPA President and CEO Barry Melancon said: ‘We welcome the mutual recognition that is at the heart of this agreement. It will give US CPAs a clear and accelerated path to obtaining a credential in the United Kingdom. The same is true of ICAS members with an interest in practicing in the United States.’

Stephen Haddrill, CEO of the FRC said: ‘The FRC welcomes the Mutual Recognition Agreement signed between ICAS, NASBA and the AICPA. Recognising the skills needed in a global business environment, the agreement provides a pathway for qualified professionals in the UK and the US to gain audit rights in each other’s jurisdictions. We consider that this is an approach that can be replicated more widely.’

Report by Amy Austin