UK and Swiss regulators agree to cooperate on cross-border supervision of audit firms
News types: Operating Procedures, Policies and Responsibilities, Publications
Published: 3 April 2014
PN 015/14
On 18 March 2014, the Financial Reporting Council (FRC) and the Federal Audit Oversight Authority (FAOA) of Switzerland signed a Memorandum of Understanding (PDF) which facilitates mutual cooperation in the area of public oversight, registration, inspections and investigations of auditors of companies that are subject to the regulatory jurisdictions of both parties.
The FAOA and the FRC seek to improve the quality, accuracy and reliability of the audit of public companies through audit regulation and auditor oversight so as to protect investors, help strengthen public trust in the audit process and increase investor confidence in their respective capital markets. Given the global nature of capital markets, it is in the common interest of both Parties to cooperate in the oversight of auditors to avoid the undue burden of overlapping supervision.
Paul George, Executive Director of Conduct said:
On 18 March 2014, the Financial Reporting Council (FRC) and the Federal Audit Oversight Authority (FAOA) of Switzerland signed a Memorandum of Understanding (PDF) which facilitates mutual cooperation in the area of public oversight, registration, inspections and investigations of auditors of companies that are subject to the regulatory jurisdictions of both parties.
The FAOA and the FRC seek to improve the quality, accuracy and reliability of the audit of public companies through audit regulation and auditor oversight so as to protect investors, help strengthen public trust in the audit process and increase investor confidence in their respective capital markets. Given the global nature of capital markets, it is in the common interest of both Parties to cooperate in the oversight of auditors to avoid the undue burden of overlapping supervision.
Paul George, Executive Director of Conduct said:
“The FRC and the FAOA have developed an excellent working relationship and this agreement will enable more specific cooperation, for example, in respect of the inspection of audit firms organised on a regional basis and the inspection of audits with significant Anglo-Swiss activities.”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.