THE Institute of Chartered Accountants of Scotland has sealed a mutual recognition agreement with its US counterpart aimed at providing a “streamlined process” for their respective members to practice in each other’s territory.

ICAS said that the agreement would provide a simple route for its members to achieve the US CPA and licensure, and for US Certified Public Accountants to attain the CA designation and UK audit-signing rights.

The agreement has also been signed by the National Association of State Boards of Accountancy (NASBA) in the US, and has been approved by the UK’s Financial Reporting Council and the ICAS Council. State boards are responsible for the licensing of CPAs in the US.

Stephen Haddrill, chief executive of the FRC, said: “The FRC welcomes the...agreement signed between ICAS, NASBA and the AICPA (American Institute of Certified Public Accountants).

“Recognising the skills needed in a global business environment, the agreement provides a pathway for qualified professionals in the UK and the US to gain audit rights in each other’s jurisdictions. We consider that this is an approach that can be replicated more widely.”

The Scottish institute noted the agreement simplified the process and reduced the examination requirements for eligible ICAS members and licensed CPAs looking to practice on the other side of the Atlantic from their professional body.

It added that CAs looking to achieve the US CPA and licensure needed to pass only one exam – the international qualification exam – and satisfy relevant state board requirements.

ICAS noted eligible US CPAs looking to attain the CA designation and UK audit-signing rights now needed only to complete the international qualification pathway and a two-year training contract, and have requisite UK audit experience.

Anton Colella, chief executive of ICAS, said: “This is a historic agreement. It’s the first of its kind between a UK chartered accountancy body and American accountancy bodies...It not only creates new opportunities in the world of transatlantic trade, but also reinforces the high standing in which we hold our American colleagues, and the expertise they value in us.”

ICAS noted, to be eligible, its members must be “in good standing”, and have completed an undergraduate degree, its CA qualification programme, and two years post-qualification “relevant practical work experience”.