The  UK and Switzerland have agreed to mutually recognise each other’s audit qualifications, a development that is set to bolster the audit markets of both countries.

This arrangement, facilitated by the Financial Reporting Council (FRC) and the Federal Audit Oversight Authority (FAOA), will allow auditors to work more seamlessly across borders, enhancing the financial ties between the two nations.

Auditors who have obtained professional audit qualifications and registration as a statutory auditor in either the UK or Switzerland can apply for recognition of their qualification and audit rights in the other country.

Sarah Rapson, FRC Executive Director of Supervision, hailed the agreement as a “positive boost for the UK’s audit market” and a means to “further strengthen the close financial ties enjoyed between the UK and Switzerland.”

Similarly, Reto Sanwald, FAOA CEO, noted that the mutual recognition of audit qualifications will “further strengthen the close co-operation between Swiss and UK financial markets.”

This mutual recognition arrangement is part of a broader agreement on the Recognition of Professional Qualifications between Switzerland and the UK, signed in June 2023 and set to come into force in 2025.

Kevin Hollinrake, Minister for Enterprise, Markets and Small Business, expressed optimism about the arrangement, stating that it will provide British auditors with the tools to compete for more contracts in Switzerland and export their top-notch services abroad.

The role of the FRC and FAOA

The FRC and the FAOA have played pivotal roles in this agreement.

The FRC assessed the Swiss statutory audit qualification as equivalent to UK statutory audit qualifications, a process made possible by funding from the Department for Business and Trade under the Recognition Arrangements Grant Programme.

The FRC prioritised mutual recognition discussions with Switzerland due to its large financial services sector, the size of its audit market, and strong trade relations with the UK.

The Future of Audit Qualifications