The Financial Reporting Council (FRC) and Australian Securities and Investment Commission (ASIC) have agreed to make it easier for auditors to work between both countries
The agreement allows auditors who have obtained professional audit qualifications as a statutory auditor in either the UK or Australia to easily apply for recognition of their qualification and audit rights in the other country from 26 March.
The audit regulator said the move would ‘improve the quality of the UK audit market by increasing the number of skilled statutory auditors able to practise in the UK over time and make it easier for UK audit firms to export their services to Australia’.
UK applicants who have completed UK audit qualifications awarded by a recognised qualifying body such as ICAEW and ICAS will be able to work in Australia as a registered company auditor, but it is worth noting that the Australian regulator will assess applications ‘on a case-by-case basis’.
The FRC has assessed the relevant Australian qualifications as equivalent to UK audit qualifications, including using an independent external expert. The work was part funded by the Department for Business and Trade (DBT)’s recognition arrangements grant programme.
Both UK and Australian users of the scheme will have to be members of either a recognised supervisory body in the UK, or an Australian accountancy body, and have obtained their membership by completing a typical pathway to membership of that body.
FRC’s executive director of supervision Sarah Rapson said: ‘Australia is a key trading partner for the UK and this agreement further strengthens our close relationship by opening new opportunities for audit firms and UK businesses to grow and expand.
‘It is a positive boost for the UK audit market, widening the pool of talent available to UK audit firms and enabling firms to export their audit services and improve the quality of their audits.’
The FRC has approved the following qualifications held by Australian trained accountants and auditors:
- CA qualification awarded by Chartered Accountants Australia and New Zealand (CAANZ) to a person who has passed the Australian variant of the taxation papers;
- CPA qualification awarded by CPA Australia (CPAA) in Australia to a person who holds an accredited degree (under joint CPA Australia and CAANZ scheme) or has completed CPA Australia foundation papers; and has passed both the advanced auditing and assurance elective paper and an elective paper in either taxation (Australia) or advanced taxation.
This is subject to completing an adaptation period in the UK.
Similar audit arrangements have recently been signed with New Zealand and Switzerland and the FRC is continuing to explore other agreements subject to rigorous qualification standards being met.
Trade policy minister Greg Hands said: ‘The UK is the world’s second largest services exporter for a reason. Countries around the world want excellent British services, so it is vital that we make it as easy as possible for UK professionals to sell those services around the world.
‘I am delighted that our trade deal with Australia and the department’s grant programme have supported the FRC in making this arrangement, helping British audit professionals to access the lucrative Australian market.’
The accounting sector, which includes audit services generated £44bn in 2023 and accounted for nearly £4bn in exports in 2022. The sector supported over half a million jobs.