FRC and the Memorandum of Understanding of Reciprocal Arrangements


The UK is now a third country under statutory audit legislation, post the end of the Brexit transition period on 31 December 2020. UK registered auditors who wish to audit entities incorporated in the Republic of Ireland (ROI) will now need to register as third country auditors under the process set out in ROI law. To facilitate this, IAASA has agreed a Memorandum of Understanding on Reciprocal Arrangements (MOURA) with the FRC, the UK competent authority. This MOURA will facilitate recognised accountancy bodies’ (RABs) ability to register UK statutory auditors as ROI statutory auditors by meeting the requirement in Irish law that a third country auditor cannot be approved as a ROI statutory auditor unless reciprocal arrangements with that third country are in place. RABs must also satisfy themselves that each individual meets the other requirements for approval as set out in law. For more please click here.

The FRC (Financial Reporting Council) in the UK has made a declaration approving the audit qualification of CPA Ireland which is a recognised accountancy body (RAB) in the Republic of Ireland. In making the declaration the FRC is satisfied that the CPA Ireland qualification affords an assurance of professional competence equivalent to that afforded by a recognised professional qualification in the UK.

John Devaney, President of CPA Ireland has stated that ‘this announcement follows on from a detailed evaluation of the CPA Ireland Qualification by the FRC in 2020. This significant development for CPA Ireland, will have a positive impact on CPA Ireland members in the UK and in Ireland and I would like to thank both regulatory authorities, IAASA and the FRC for their contribution. Being based in the UK myself, I am delighted that both regulators have reached an agreement on reciprocity in respect of auditors in both the Republic of Ireland and in the United Kingdom which gives certainty post Brexit”.

Additional information is available here.