English ICA calls for mutual recognition

English ICA calls for mutual recognition

The English ICA president today stepped up demands for the US Securities and Exchange Commission to recognise the UK's system of safeguarding auditor independence.

A staunch opponent of the US drive for an international rule-based approach to audit independence, Graham Ward, said: ‘I hope the SEC will give serious consideration to a mutual recognition agreement which would recognise the strength of the UK’s framework approach.’

Ward’s comments come in the wake of a protracted debate on the modernisation of auditor independence rules in the United States. The revised rules announced on 15 November substantially limit the amount of consulting work Big Five firms can offer audit clients. But the SEC ruled out prohibiting firms from offering non-audit services to audit clients following persistent opposition from accountancy firms.

The UK accountancy industry applies a principles approach to securing and monitoring auditor independence. An ICAEW inquiry published in August found concerns raised about audit independence in the US following investigations by the SEC were not repeated by UK firms.

‘Overall we welcome the SEC’s proposals. We are pleased to see that the SEC has begun to recognise the often unforeseen results of implementing a US regulatory regime in the global marketplace. However more needs to be done,’ said Ward.

The International Federation of Accountants and the European Federation of Accountants have both recently adopted a principles-based code of conduct to independence. IFAC hopes Iosco, the world club of stock market regulators, will endorse its code on auditor independence next April.

AccountancyAge.com news archive

‘Big Five firms will still split’

SEC releases finalised independence rules

SEC U-turns on audit rules

PwC approves of new SEC rules

KPMG disappointed by SEC’s new rules

PwC says HP pull-out ‘unfortunate’

SEC compromise on cards

E&Y confident of SEC solution

Levitt under fire from US Senate

Where Levitt’s plan falls short

SEC gives Big Five more time

Ward prepares to attack SEC proposals

KPMG chief pulls out of SEC hearings

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource