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MUTUAL RECOGNITION AGREEMENT
Recommended by
CPA Australia Ltd
and
International Qualifications Appraisal Board
Representing
National Association of
State Boards of Accountancy
NASBA
and
American Institute of
Certified Public
Accountants
AICPA
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MUTUAL RECOGNITION AGREEMENT
Introduction
The State Boards of Accountancy or their equivalent in each of the United States'
jurisdictions (known collectively as the “State Boards”), which act pursuant to their
authorizing statutes, are legislatively empowered by law to protect the public interest by
granting and regulating the Certified Public Accountant credential and license to practice.
CPA Australia Ltd (CPA Australia) is empowered to issue the Certified Practising
Accountant designation to qualified applicants. The State Boards and CPA Australia grant
respectively the US CPA and Australian CPA credentials and either grant licenses to practice
or their members have access to a license to practice.
The National Association of State Boards of Accountancy (NASBA) and the American
Institute of Certified Public Accountants (AICPA) jointly established the International
Qualifications Appraisal Board (IQAB) to:
1. Assist State Boards seeking to establish abbreviated pathways through which
experienced professionals, who hold substantially equivalent foreign professional
accounting credentials, may obtain a Certified Public Accountant license in their
jurisdiction (US CPA credential); and
2. Enable US CPAs to obtain foreign professional accounting credentials and the right
to practice through similar abbreviated pathways.
CPA Australia, under its Constitution and By-Laws, has the authority to make:
1. Rules regarding criteria for membership of CPA Australia, including setting rules
regarding examinations and the period of approved service, the entitlement to be
called a Certified Practicing Accountant and regulations regarding the granting of
practise rights; and
2. Rules and conditions regarding the recognition of other accountancy bodies for the
purposes of granting membership to CPA Australia.
Believing that there are a significant number of US CPAs who desire to obtain the Australian
CPA credential including the CPA Australia Public Practice Certificate and Registered
Company Auditor status in Australia and Licensed Auditor status in New Zealand , and a
significant number of Australian CPAs who desire to obtain the US CPA credential, the
IQAB and CPA Australia (known collectively as the “Parties”) set out to evaluate each
other’s credential to ascertain if they are substantially equivalent and would thus allow both
parties to create for qualified holders of either of the credentials an abbreviated qualification
pathway.
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Eligibility of Applicants under this Agreement:
To be eligible for this agreement, candidates must affirm that they are capable of performing
audit and attest services based on their competence to complete such services according to the
relevant professional standards,
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including having the requisite additional experience/training
necessary for such work.
CPA Australia’s Undertaking
The Australian Securities and Investments Commission (ASIC) is Australia’s corporate,
markets and financial services regulator. ASIC regulates the licensing of certain prescribed
services, such as Registered Company Auditors (RCA) in Australia. ASIC has requirements
regarding the experience necessary to be eligible for appointment as a RCA in Australia.
Generally, a US CPA must demonstrate the obtainment and detail of at least 3,000 hours (i.e.,
2 years and 8 months) of work experience auditing reporting entities, during the 5 years
immediately before the date of their application, either in the US or Australia. At least 12
months of the 3,000 hours must be practical experience obtained in Australia supervised by
another RCA.
Within the term of this agreement:
1. CPA Australia undertakes to seek a determination from the ASIC to recognize
practical audit experience obtained in the US towards the above noted 12-month
practical audit experience requirement for the Registered Company Auditor
qualification.
2. CPA Australia undertakes to report to the IQAB on its progress on this undertaking on
an annual basis.
IQAB’s Undertaking
Within the term of this agreement, the IQAB undertakes to renegotiate Appendix 1 of this
agreement with the aim of expanding access to this agreement to CPA Australia members
who are not citizens of Australia or New Zealand; or holders of visas granting legal residency
in Australia or New Zealand.
Basis of Review
The Parties have reviewed each other’s credential requirements for entry-level qualification
and maintenance of the credential. The review included a comparison of each other’s
education, experience, examination and other qualification requirements as well as such
factors as continuing education, adherence to a code of ethics, enforcement and judicial
processes, organizational structure, administrative responsibilities and other credential
maintenance requirements to their own corresponding requirements.
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US CPAs generally practice under standards set by the AICPA, the Financial Accounting Standards Board, the
Governmental Accounting Standards Board, the Public Company Accounting Oversight Board and the
International Accounting Standards Board. CPA Australia members must generally practice in Australia under
standards issued by CPA Australia (Constitution & By-Laws), Accounting Professional & Ethics Standards
Board, Australian Accounting Standards Board and the Australian Auditing & Assurance Standards Board. In
New Zealand, CPA Australia members must generally practice under standards issued by CPA Australia
(Constitution & By-Laws), Professional and Ethical Standards issues by the External Reporting Board,
Financial Markets Conduct Act 2013, Financial Reporting Act 1993 and 2013, Auditor Regulation Act 2011,
and the Financial Markets Authority.
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The IQAB compared CPA Australia’s requirements to those set out in the Uniform
Accountancy Act (UAA). The UAA is a model law, and not enforceable. Much of the UAA’s
language is used by the US jurisdictions and State Boards as they draft the laws and rules that
must be followed. Each individual US jurisdiction’s requirements can be found in that
jurisdiction’s laws and rules.
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CPA Australia compared the UAA requirements to the education, examination and
experience requirements of CPA Australia’s professional qualification program (CPA
Program).
Basis of Recognition
As a result of these reviews, the Parties are satisfied that the US CPA credential and
Australian CPA credential are substantially equivalent subject to the conditions set forth in
this agreement and accompanying appendices.
Therefore, the Parties agree:
1. To create an abbreviated qualification pathway for eligible holders of the others’
credential:
a. A holder of an Australian CPA credential will be eligible to obtain the US
CPA credential via this agreement if the holder meets the eligibility
requirements set out in Appendix 1A.
b. A holder of a US CPA credential will be eligible to obtain the Australian CPA
credential via membership with CPA Australia if the holder meets the
eligibility requirements set out in Appendix 1B.
2. An eligible holder, as set out in 1 above, may obtain the other credential via the
following abbreviated pathways:
a. The abbreviated pathway to the US CPA credential for eligible holders of an
Australian CPA credential is set out in Appendix 2A.
b. The abbreviated pathway to the Australian CPA credential via membership
with CPA Australia for eligible holders of a US CPA credential is set out in
Appendix 2B.
3. To assist holders of the other’s credential, who are both eligible for the abbreviated
pathway, as set out in 1 above, and who successfully complete the abbreviated
pathway, as set out in 2 above, to obtain licensure in their respective jurisdictions:
a. Appendix 3A sets out the process that an Australian CPA credential holder
should follow to obtain licensure in the United States.
b. Appendix 3B sets out the process that a US CPA credential holder should
follow to obtain a CPA Australia Public Practice Certificate and Registered
Company Auditor status in Australia and/or Licensed Auditor status in New
Zealand.
4. This agreement shall be in force for a period of five years from the date of last
signature. This agreement may be renewed, or extended, through mutual agreement.
5. To inform the other Party, on an annual basis, if any:
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To access the laws and rules of each jurisdiction visit: https://nasba.org/stateboards/.
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a. Material changes are made to the qualification requirements of their
credential.
b. Mutual recognition agreements, reciprocal membership agreements, or other
similar agreements are signed or renewed with other institutes or professional
accountancy organizations, subject to compliance with any obligations of
confidentiality.
c. New or existing pathways to membership or licensure for foreign credential
holders are initiated or materially altered.
d. Strategic alliances, joint ventures, or material relationships with other
institutes or professional accountancy organizations are initiated or materially
altered, subject to compliance with any obligations of confidentiality.
6. Either Party may, with 60 (sixty)-days’ notice, withdraw their consent to this
agreement.
7. A decision by CPA Australia or the State Boards not to provide the other Party’s
CPA credential to an eligible person in circumstances where there are reasonable
concerns that the eligible person may not uphold the standards required to hold the
relevant CPA credential (even if the person is otherwise deemed to have fulfilled the
entry requirements) is not a breach of this agreement. In such event, either Party may
raise concerns with the other Party and the Parties will work in good faith to address
the matter.
8. Each Party will, in their dealings with the other Party under this agreement, comply
with privacy, spam and data security laws and regulations that it deems applicable.
9. No variation or waiver of any provision or condition of this agreement will be
effective unless it is in writing and signed by or on behalf of each of the Parties (or,
in the case of a waiver, by or on behalf of the Party waiving compliance).
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Appendix 1A
Eligibility Requirements for Members of
CPA Australia
An Australian CPA may be eligible to obtain the US CPA credential via this agreement if he
or she is either a citizen of Australia or New Zealand; or a holder of a visa granting legal
residency in Australia or New Zealand, is a member in good standing of CPA Australia, and
meet the additional criteria set out in each of the following sections and applicable US
jurisdictions’ laws and State Board rules.
1) Education Criteria:
The UAA requires at least 150 semester hours of college or university education, including a
baccalaureate or higher degree conferred by a college or university deemed acceptable by the
State Board.
US jurisdictions’ legal requirements are identical or similar to the education criteria set forth
in the UAA. Additionally, many US jurisdictions’ laws and State Board rules mandate the
completion of specific coursework and the satisfaction of additional education criteria for
licensure. Each individual US jurisdiction’s education requirements can be found in that
jurisdiction’s laws and rules.
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CPA Australia allows for multiple entry routes to its CPA credential. At a minimum, an
Australian CPA must:
1. Hold at least a baccalaureate or higher degree; and
2. Have completed CPA Australia’s CPA Program.
2) Examination Criteria:
Under the UAA and under all US jurisdictions’ laws and State Board rules, passage of the
Uniform CPA Examination is a necessary prerequisite for licensure as a US CPA. Each
individual US jurisdiction’s examination requirements can be found in that jurisdiction’s laws
and rules.
Advanced Taxation and / or Advanced Audit and Assurance are compulsory subjects of CPA
Australia’s CPA Program if recognized studies have not been completed in University in
advanced taxation and / or advanced auditing.
To meet the examination criteria of the eligibility requirements of this agreement, Australian
CPAs must have passed CPA Australia’s CPA Program, which comprises the following
subjects:
• Two elective subjects from the following list of subjects:
o Financial Planning Fundamentals
o Advanced Taxation
o Advanced Audit and Assurance
o Financial Risk Management
o Contemporary Business Issues
o Superannuation and Retirement Planning.
• Ethics and Governance;
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To access the laws and rules of each jurisdiction visit: https://nasba.org/stateboards/.
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• Strategic Management Accounting;
• Financial Reporting; and
• Global Strategy and Leadership, which is the capstone subject to be completed as
final subject of the CPA Program.
3) Experience Criteria:
Under the UAA, US CPAs must have at least one year of experience verified by a licensee of
a State Board. This experience includes providing a service or advice involving the use of
accounting, attest, compilation, management advisory, financial advisory, tax or consulting
skills, and meeting requirements prescribed by a US jurisdiction’s laws and State Board rules.
This experience may be acceptable if it was gained through employment in government,
industry, academia or public practice. Each individual US jurisdiction’s experience
requirements can be found in that jurisdiction’s laws and rules, which are generally similar or
identical to the experience criteria set forth in the model UAA.
To meet the experience criteria of the eligibility requirements of this agreement Australian
CPAs must have completed a minimum of three years of relevant work experience prior to
obtaining the Australian CPA credential and being admitted to membership in CPA Australia
and an additional two years and eight months of relevant work experience after obtaining the
Australian CPA credential and being admitted to membership. Additional specific experience
requirements may be required by the State Board from which the credential is sought. Some
State Boards may exercise the authority to verify such experience and will determine how
such verification will be performed, including working with NASBA’s Experience
Verification Service.
4) Continuing Professional Education Criteria:
Under the UAA, compliance with continuing professional education (CPE) requirements are
set by the State Boards. Each individual US jurisdiction’s requirements for CPE verification
can be found in that jurisdiction’s laws and rules.
To meet the CPE criteria of the eligibility requirements of this agreement, Australian CPAs
must be in compliance with the continuing professional development (CPD) requirements of
CPA Australia.
Exclusions:
Australian CPAs who obtained their Australian credential by qualifying under a reciprocal
agreement that CPA Australia may have with another professional accountancy organization
are not eligible under this agreement. This includes all mutual recognition agreements,
reciprocal membership agreements, and other similar agreements which CPA Australia may
have or have had at any time.
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Appendix 1B
Eligibility for Holders of a US CPA Credential
A holder of a US CPA credential may be eligible to obtain the Australian CPA credential
under this agreement if he or she is in good standing with a State Board and meet the
additional criteria set out in each of the following sections.
1) Education Criteria:
To obtain the Australian CPA credential, CPA Australia mandates that applicants:
1. Hold at least a baccalaureate or higher degree; and
2. Have completed CPA Australia’s CPA Program.
To meet the education criteria of the eligibility requirements of this agreement, US CPAs
must have the equivalent of at least 150 semester hours of college or university education,
including a baccalaureate or higher degree conferred by a college or university acceptable to
a State Board.
US CPAs who qualified prior to the introduction of the 150 semester hour requirement are
grandfathered into this agreement as having met the 150 semester hour requirement.
Additional specific studies, set out in Appendix 3B, are required of all Australian CPAs who
wish to obtain a Public Practice Certificate and/or provide Public Accounting Services in
Australia or New Zealand.
2) Examination Criteria:
Advanced Taxation and / or Advanced Audit and Assurance are compulsory subjects of CPA
Australia’s CPA Program if recognized studies have not been completed in University in
advanced taxation and / or advanced auditing.
To meet the examination criteria of the eligibility requirements of this agreement, Australian
CPAs must have passed CPA Australia’s CPA Program, which comprises the following
subjects:
• Two elective subjects from the following list of subjects:
o Financial Planning Fundamentals
o Advanced Taxation
o Advanced Audit and Assurance
o Financial Risk Management
o Contemporary Business Issues
o Superannuation and Retirement Planning.
• Ethics and Governance;
• Strategic Management Accounting;
• Financial Reporting; and
• Global Strategy and Leadership which is the capstone subject to be completed as
final subject of the CPA Program.
To meet the examination criteria of the eligibility requirements of this agreement, US CPAs
must have passed the Uniform CPA Examination.
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Additional examination requirements, set out in Appendix 3B, are required of all Australian
CPAs who wish to obtain a Public Practice Certificate and/or provide Public Accounting
Services in Australia or New Zealand.
3) Experience Criteria:
Australian CPAs must complete a minimum of three years of relevant work experience prior
to obtaining the Australian CPA credential. Experience can be completed either before, after,
or concurrently with the CPA Program subjects. A minimum of 10 skills across four
categories must be demonstrated over the course of experience. This must include a minimum
of:
• four technical skills;
• two personal effectiveness skills;
• two business skills; and
• two leadership skills.
Each role must include at least one technical skill from the skills set to be counted towards
the required work experience.
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To meet the experience requirement of this agreement, US CPAs must have satisfied the
experience requirement of their State Board.
Additional experience requirements, set out in Appendix 3B, are required of all Australian
CPAs who wish to obtain a Public Practice Certificate and/or provide Public Accounting
Services in Australia or New Zealand.
4) Continuing Professional Development Criteria:
Every Australian CPA must, in each triennium, undertake at least 120 hours of continuing
professional development (CPD) of which at least 20 hours must be undertaken in each year
of the triennium.
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To meet the CPD criteria of the eligibility requirements of this agreement, US CPAs must be
in compliance with the continuing professional education (CPE) requirements of their State
Board.
Exclusions:
US CPAs who obtained their CPA credential by qualifying under a reciprocal agreement that
the IQAB may have with another professional accountancy organization are not eligible
under this agreement. This includes all mutual recognition agreements, reciprocal
membership agreements, and other similar agreements which the IQAB may have or have
had at any time.
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Further information on CPA Australia’s experience requirements can be found on CPA Australia’s website at:
https://www.cpaaustralia.com.au/cpa-program/cpa-program-candidates/your-experience/how-to-meet-your-
experience-requirement.
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Further information on CPA Australia’s CPD requirements can be found on CPA Australia’s website at:
https://www.cpaaustralia.com.au/member-services/continuing-professional-development
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Appendix 2A
Abbreviated Pathway to the US CPA Credential for
Eligible Holders of an Australian CPA Credential
To obtain the US CPA credential, an eligible holder of an Australian CPA credential must:
1. Pass the International Qualification Examination (IQEX); and
2. Upon successfully passing the IQEX, apply to a State Board.
To sit for the IQEX, an eligible holder must take the following steps (please note that the
following list is not intended to be comprehensive):
1. Create an online user account
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with NASBA.
2. Complete an application form.
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3. Obtain a letter of good standing
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from CPA Australia. This letter will confirm that the
eligible holder has met the eligibility requirements set out in Appendix 1A and must
be sent directly to NASBA by CPA Australia.
4. Pay the requisite fees.
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The process for applying to a State Board differs depending upon the US jurisdiction to
which an eligible holder applies. However, in general, an eligible holder must take the
following steps (please note that the following list is not intended to be comprehensive, and
licensure is fully at the discretion and direction of the State Boards and their authorizing
statutes):
1. Select a State Board
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and complete the State Board’s application.
2. Request NASBA to report her/his IQEX score to the State Board.
3. Satisfy the State Board’s requirements which may include:
a) Specific educational course work.
b) Passing an ethics exam and/or CPE course.
c) Providing evidence of the eligible holder’s good character and/or
reconfirmation of some of the eligibility requirements set out in Appendix 1A.
d) Providing evidence that the eligible holder is in compliance with the State
Board CPE requirements.
e) Paying the State Board’s fees.
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Registering for a user account will allow an eligible holder to apply for the examination, maintain her/his
current information, view her/his scores, check her/his application status and reprint her/his Notice to Schedule.
Detailed information may be found at www.nasba.org.
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The application form will require information which will allow NASBA to verify that the applicant has met all
of the required eligibility requirements set out in Appendix 1A and information required to schedule the
applicant’s IQEX. Detailed information may be found within the IQEX Candidate Bulletin at www.nasba.org.
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A template letter of good standing with completion instructions and a form which eligible holders may send to
CPA Australia to request its completion may be found at www.nasba.org
.
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Fees charged for applying for the IQEX are changed periodically. A current list of fees may be found at
www.nasba.org
.
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While the AICPA and NASBA’s Boards have approved this agreement, it is up to each US jurisdiction as
directed by their law, to decide if they will adopt it. A current list of US jurisdictions which will accept
applications from Australian CPAs may be found within the IQEX Candidate Bulletin at www.nasba.org
.
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Appendix 2B
Abbreviated Pathway to the Australian CPA Credential for
Eligible Holders of a US CPA Credential
To obtain the Australian CPA credential, an eligible holder of a US CPA credential must:
1. Create an online user account with CPA Australia.
2. Complete an online application.
3. Obtain a letter of good standing
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from their State Board, which will confirm that the
eligible holder has met the eligibility requirements set out in Appendix 1B.
4. Upload identification documentation as directed in the online application.
5. Pay the requisite fees.
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Upon the conferral of the Australian CPA designation, US CPAs must comply with the
Constitution and By-Laws
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of CPA Australia. Their requirements include periodic
membership renewal and continuing professional development requirements.
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A template letter of good standing should include a statement of current good standing with the Board, of
Uniform CPA examination completion and the years of verified experience.
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Fees charged for applying for membership of CPA Australia and for a Public Practice Certificate are changed
periodically. A current list of fees, may be found at: www.cpaaustralia.com.au.
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Available at: www.cpaaustralia.com.au.
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Appendix 3A
Process to Obtain Licensure in the US for
Eligible Holders of an Australian CPA Credential
In the United States, the US CPA credential is a license to practice public accounting, issued
by a US jurisdiction, valid for use in such jurisdiction.
Upon completing the Abbreviated Pathway and successfully applying to a State Board (as set
out in Appendix 2A), the eligible holder of the Australian CPA credential may receive a CPA
license in a US jurisdiction.
Once licensed, CPA licensees are under the auspices of, and subject to, all relevant federal
laws and regulations, US jurisdictions’ laws, regulations, and policies. Maintenance of the
license requires meeting periodic renewal requirements, including timely completion of
renewal forms, continuing professional education and payment of fees. In some instances,
obtainment of a firm license, in addition to an individual license, will be necessary to legally
provide certain restricted services in US jurisdictions.
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Appendix 3B
Process to Obtain Licensure for the Provision of Public Accounting Services in
Australia or New Zealand for Eligible Holders of a US CPA Credential
License for Practice – Public Accounting Services
Any CPA Australia member providing Public Accounting Services in Australia or New
Zealand must hold a Public Practice Certificate. The following are definitions of what Public
Accounting Services and Public Practice Certificate mean:
“Public Accounting Services” include: accounting, auditing and assurance, bookkeeping,
consumer and commercial credit services, financial planning and advice, financial reporting,
forensic accounting, insolvency and corporate reconstruction, management accounting,
management consulting, taxation, transactional accounting and valuation services.
“Public Practice Certificate” or “PPC” means a certificate issued pursuant to CPA
Australia’s By-Law 9.4 permitting a CPA Australia member to provide Public Accounting
Services.
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To be eligible to obtain a CPA Australia PPC, a US CPA must satisfy the requirements
specified in Part 9 of CPA Australia’s By-Laws
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which are the following:
1. Be admitted as a CPA Australia member by satisfying the requirements in Appendices
1B and 2B.
2. Provide evidence of having passed: (a) an Australian tax course and company law
course (for US CPAs wishing to practice in Australia); or (b) a New Zealand tax
course and company law course (for US CPAs wishing to practice in New Zealand).
3. Pay the applicable registration and annual fees.
License to perform prescribed services:
In addition to the requirements imposed by CPA Australia, a CPA Australia member will be
required to satisfy several licensing requirements, as listed below, when conducting Public
Accounting Services or providing certain prescribed services (such as statutory audits) in
either Australia or New Zealand.
Australian requirements:
Statutory Audits (Registered Company Auditor)
The Australian Securities and Investments Commission (ASIC) is Australia’s corporate,
markets and financial services regulator. ASIC regulates the licensing of certain prescribed
services, such as Registered Company Auditors (RCA) in Australia. ASIC Regulatory Guide
RG 180 Auditor Registration (RG 180
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) sets out the requirements for registering as a RCA.
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After obtaining the CPA Australia credential and the PPC in Australia, a US CPA must:
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https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/about/by-laws-effective-8-october-
2017.pdf?la=en.
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https://www.cpaaustralia.com.au/about-us/our-organisation/our-bylaws.
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http://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-180-auditor-registration/.
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ASIC may refuse to register a person as an RCA who is not resident in Australia, however they have some
discretion in this regard.
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1. Apply using Form 903AA for registration as an auditor and pay the appropriate fee to
ASIC.
2. Meet the approved competency standard OR have practical experience as prescribed
by the Corporations Regulations OR have equivalent practical, overseas, and
supervisory experience.
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• Generally, a US CPA must demonstrate the obtainment and detail of at least
3,000 hours (i.e., 2 years and 8 months) of work experience auditing reporting
entities, during the 5 years immediately before the date of their application,
either in the US or Australia. At least 12 months of the 3,000 hours must be
practical experience obtained in Australia supervised by another RCA.
3. Show the capability to perform the duties of an auditor AND be a fit and proper
person.
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• A US CPA must file a Capability Report including details of the three most
significant audits they have worked on showing they have had experience in
handling complex audits and a Capability Declaration from their supervisor(s)
verifying their capability of performing the duties of an auditor. In addition,
the report must include details of their CPE in the last 5 years.
• A US CPA must file a Fit and Proper Statement, containing details of any
previous disqualifications, disciplinary action taken, litigation matter, criminal
conviction, or resignation or removal as an auditor, etc.
Other Audit Licenses
Additional requirements apply for Assurance Practitioners Undertaking Review Engagements
and SMSF (pension fund) auditors. For further information, refer to ASIC Regulatory Guide
243 “Registration of Self-Managed Superannuation Fund Auditors.”
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The ASIC website
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provides access to Auditor Licensing Pathways, Regulatory Guides (RGs) and guidance and
application processes for finance professionals.
Further Guidance
CPA Australia’s website includes a Guide to Licences and Registrations for Australian Public
Practitioners.
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New Zealand requirements:
In New Zealand, the Financial Markets Authority (FMA) is the government agency
responsible for enforcing securities, financial reporting, and company law as they apply to
financial services and securities markets. FMA regulates the licensing of auditors under the
Auditor Regulation Act 2011 (ARA) and through accredited bodies. CPA Australia has been
recognized by the FMA to be an accredited body and authorized to license individuals to
conduct Financial Markets Conduct Act 2013 (FMC) audits.
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18
RG 180.36 – RG 180.96 and RG 180.118 – RG 180.130.
19
RG 180.97-RG 180.115.
20
http://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-243-registration-of-self-
managed-superannuation-fund-auditors/.
21
http://asic.gov.au/for-finance-professionals.
22
www.cpaaustralia.com.au/practicemanagement
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For more information about becoming a Licensed Auditor please see:
https://www.cpaaustralia.com.au/professional-resources/audit-and-assurance/new-zealand/licensed-auditors
.
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A PPC holder must be a Licensed Auditor or Qualified Auditor to conduct regulated audits in
New Zealand. The Licensed Auditor regime includes audits regulated under the Financial
Markets Authority (FMA) including audits of listed companies, banks, and issuers of
financial products/derivatives. The Qualified Auditor regime includes regulated audits such
as non-FMC companies and larger charities.
CPA Australia members resident in New Zealand may apply directly to CPA Australia to be
a Licensed Auditor or be approved as a Qualified Auditor in New Zealand, however overseas
auditors must apply directly to the FMA.
Licensed auditors (auditing of issuers of regulated products and other FMC reporting
entities)
If a PPC holder is responsible for conducting Financial Markets Conduct Act 2013 (FMC)
audits in New Zealand, the PPC holder must hold a license under the Auditor Regulation Act
2011 (New Zealand) (ARA). CPA Australia is an accredited body authorised to license
individuals under the ARA to conduct FMC audits.
After obtaining the CPA Australia credential and the PPC in New Zealand, a US CPA must:
1. Complete the application form and pay the appropriate fee to CPA Australia.
2. Provide details of at least 3,000 hours (i.e., 2 years and 8 months) of audit work
within the five years prior to making an application to demonstrate competency levels
have been maintained, including at least 750 hours of work on issuer audits and/or
similar audit engagements and a minimum of 375 hours (included in the 750 hours) of
work on issuer audits. The audit work may be obtained in either the US or New
Zealand.
3. Attain an Advanced Certificate of Competence certifying that the applicant has
demonstrated competence in all key aspects of the audit, including a declaration by an
approved assessor.
4. Disclose any matter that may impact on whether they are a fit and proper person and
obtain a current criminal conviction record from the Ministry of Justice.
Qualified auditors (statutory audits)
CPA Australia may recognise members who meet CPA Australia’s eligibility criteria as
Qualified Auditors
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who can conduct certain statutory assurance engagements, including
companies (other than FMC reporting entities), large and medium charities, and other
statutory bodies. More information about becoming a Qualified Auditor may be found on the
CPA Australia website.
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Further Guidance
CPA Australia’s website
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includes an Auditor Licensing Guide and a Guide to Recognition
as a Qualified Auditor.
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For more information about becoming a qualified auditor please see:
https://www.cpaaustralia.com.au/professional-resources/audit-and-assurance/new-zealand/qualified-auditors.
25
https://www.cpaaustralia.com.au/professional-resources/audit-and-assurance/new-zealand/qualified-auditors.
26
www.cpaaustralia.com.au/practicemanagement.
