UK and Japanese regulators agree to cooperate on cross-border supervision of audit firms

News types: Generic Announcement, Operating Procedures, Policy Statements, Statements

Published: 6 June 2014

PN 34/14
On 23 May 2014, the Certified Public Accountants and Auditing Oversight Board (CPAAOB) and the Financial Services Agency (JFSA) of Japan exchanged letters on cooperation with the Financial Reporting Council (FRC),  to facilitate the exchange of information related to the oversight of auditors and 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 CPAAOB, JFSA and the FRC seek to improve the quality, accuracy and reliability of the audit of public companies through audit regulation and auditor oversight in order 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, the CPAAOB and JFSA have an excellent working relationship and this agreement enables more specific cooperation, for example, the sharing of information about inspections of audits of companies listed on one another’s capital markets.”  

 
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.

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