The UK’s Financial Reporting Council (FRC) and the Australian Securities and Investment Commission (ASIC) have agreed a memorandum of understanding on reciprocal arrangements (MOURA). This will allow auditors who have obtained professional audit qualifications as a statutory auditor in the UK or Australia to more easily apply for recognition of their qualification and audit rights in the other nation.
‘This agreement provides greater clarity and confidence for auditors moving between Australia and the UK’
The MOURA was the result of an independent assessment of the relevant Australian qualifications, funded by the UK Department for Business and Trade’s Recognition Arrangements Grant Programme, and followed the signing of a free trade agreement between the UK and Australia, which came into force in May 2023. This included provisions to encourage regulators to pursue recognition agreements; similar audit arrangements have recently been signed with New Zealand and Switzerland.
Talent pool
‘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,’ said Sarah Rapson, executive director of supervision at the FRC. ‘It is a positive boost for the UK audit market, widening the pool of talent available to UK audit firms and further enabling firms to export their audit services and improve the quality of their audits.’
Maggie McGhee, ACCA’s executive director for strategy and governance, welcomed the announcement, noting that it would help address the global shortage of audit talent, which is the focus of a new report by ACCA and CA ANZ, Attract, engage, retain: Insights and recommendations for audit talent success.
‘Over time this MOURA should increase the supply of high-quality auditors for both economies,’ she said. ‘This will in turn support the continued efforts from the respective regulators of the two countries to drive high-quality audit in the public interest.’
‘The ability to be recognised and work overseas in a truly global profession is a major drawcard for a career in audit, and this agreement provides greater clarity and confidence for auditors moving between Australia and the UK,’ said Simon Grant, CA ANZ’s group executive advocacy and international development.
