Audit requirements in the Crown Dependencies
Audit arrangements in the Crown Dependencies of Jersey, Guernsey and the Isle of Man.
Since 5 April 2010, special arrangements have applied to firms that audit companies incorporated in one of the Crown Dependencies that have 'transferable securities' admitted to trading on a 'regulated market' in the EU. The arrangements apply even if the firm or company is not operating in a Crown Dependency.
ICAEW, in conjunction with the Crown Dependencies, has produced a note on these arrangements. This describes the audit arrangements that already exist for companies incorporated in the Crown Dependencies and the arrangements for those who audit 'listed' companies.
Current Audit rules
These arrangements include a common set of audit rules for firms in the Crown Dependencies that audit these companies. They are based on ICAEW’s audit regulations.
A note summarising the changes made since the first set of rules in 2010 is also available.
Proposed audit rules changes - deferred
The Guernsey Registry, Isle of Man Financial Services Authority and Jersey Financial Services Commission issued a joint consultation paper in October 2018 proposing the adoption of new Crown Dependency Audit Rules. The feedback from this consultation, combined with the developments on Brexit in the subsequent months, has persuaded the authorities to defer implementation until the regulatory landscape and equivalence arrangements post Brexit are clearer in the UK and EU.
It had originally been envisaged that these new rules would have commenced 1 April 2019 for audits of periods commencing on or after 6 April 2019. This is now not being implemented. As a consequence the 2010 Rules continue to apply until further notice.
A note summarising the proposed changes is available here.
Should you have any questions, please do not hesitate to contact our Technical Advisory team on +44 (0)1908 248 250
New firms registering under these arrangements are asked to complete an initial return.
Each Crown Dependency sets initial and annual fees for registration as a recognised auditor and these fees can be viewed as follows:
ICAEW also has a fee scale, which includes charges for Audit Quality Review and the Financial Reporting Council.