New Zealand and the UK have signed a first of its kind agreement to recognise audit qualifications in both the UK and NZ
so that auditors can more easily work between both countries.
The Memorandum of Understanding on Reciprocal Arrangements (MOURA) was signed by the UK’s Financial Reporting Council (FRC) and the NZ Financial Markets Authority (FMA) - the
competent audit authorities for each country.
New Zealand and the UK signed a free trade agreement in February 2022 which included an annex on recognition of
professional qualifications, encouraging regulators to establish routes to recognition and remove costly and burdensome
requirements.
The FRC was awarded funding through the Department of Business and Trade’s Recognition Arrangements Grant Programme,
making it possible to analyse the compatibility of UK and NZ professional qualifications. The funding is part of the
government’s plans to encourage UK regulators and professional bodies in all sectors to agree recognition arrangements.
The MOURA will provide a process for auditors who have obtained professional audit qualifications in either the UK or
New Zealand to apply for recognition of their qualification and audit rights in the other nation. The agreement follows
detailed analysis by both the FRC and the FMA to ensure the approved qualifications affords an assurance of professional
competence equivalent to that afforded by a recognised professional qualification. Where applicable, applicants are
required to complete aptitude tests or a period of adaptation.
The MOURA will improve the quality of the UK and New Zealand audit markets by increasing the size of the talent pool
over time and supports the interests of UK and New Zealand accounting firms and professional bodies. The agreement will
help to deliver a more resilient audit market in the UK and New Zealand through greater competition and choice and by
enabling skilled auditors to have their qualifications recognised and so move more easily between the UK and New
Zealand.
The FRC is currently exploring similar arrangements with other countries that are important markets to the UK, to
further widen the audit talent pool, subject to thorough assessments of the qualifications.
The FRC’s Acting CEO and Executive Director of Supervision, Sarah Rapson said:
“The FRC welcomes this first of its kind agreement which will attract auditors to the UK, strengthen audit relations
between the UK and NZ and supports the Government’s commitment to recognise professional qualifications internationally.
“It ensures a more efficient pathway for senior auditors to work in both countries, boosting access to a wider pool of
auditors, while upholding the high professional standards expected of auditors.”
FMA CEO Samantha Barrass said:
“This agreement will provide an easier route for experienced UK auditors to work in New Zealand and help strengthen the
local auditing industry.
“The FMA is committed to supporting greater alignment of the two countries’ auditor markets through mutual recognition
of professional qualifications that set high consistent standards. We would like to thank the FRC for the opportunity to
collaborate on this important endeavour.”