Q:  My firm is not a member of the ICAEW can I apply to be a Recognised Auditor?

A:  YES.  Any member of the four institutes above may apply to be a recognised auditor, however upon registration they become bound by the Crown Dependency Audit Rules, subject to the oversight of the ICAEW and liable to pay an annual fee to the ICAEW for that oversight.  In future is it expected to expand the oversight function to the other institutes but that is yet to be finalised

Q: How much will the ICAEW charge?
A: You need to contact the ICAEW to find out that information.  They will be publishing their scale of fees in due course, it is anticipated that the fees will be relatively low in the first year but will rise in subsequent years to cover the ICAEWs inspection and oversight costs?

Q: Can I audit Guernsey companies if I am not registered?
A: the Recognition of Auditors regime only applies to Guernsey Companies that have their securities listed on an EU regulated market (for example the main market of the London Stock Exchange).  The Law defines these companies as “market traded companies”.  If the company you are auditing does not have securities listed on an EU regulated market you may audit that companies accounts provided you meet the qualification requirements in section 260 of the Company Law .

Q: Once registered can anyone I employ audit market traded companies?
A: No.  You are also required to nominate individuals who you certify as sufficiently competent and experienced to conduct audits of market traded companies (“Responsible Individuals” or “RIs”).  You must notify the Registry of all RIs appointed by you.  That nomination can be made using the appropriate form which is available here [to be added at a later date],

Q: What are my obligations as a Recognized Auditor or Responsible Individual?
A: You must comply with the Crown Dependency Audit Rules which are available here .  Those rules have been approved by the Commerce & Employment Department and provide the rules and guidance with which recognised auditors must comply?

Q: What happens if I breach the rules?
A: You may be subject to disciplinary action by the ICAEW and/or the Registry.  The ultimate sanction is that you may be struck off the register of recognised auditors.

Q: My Company is listed on the Channel Island’s Stock Exchange, do I have to register?
A: The oversight regime presently only applies to EU regulated markets. It does not apply to the Channel Islands Stock Exchange or the Alternative Investment Market.  The scope of the regime may be expanded in the future.  If the exchange is not an EU regulated market you should check the relevant listing rules of the exchange with respect to audited accounts and auditor qualification.

Q: I had been engaged to audit a market traded company before the amendments came into force, do I have to register?
A: There is a three month transitional period which means that you will not commit an offence for failing to register with the Company Registry until 5 July 2010.  By the end of that period you must register with the Company Registry to continue to audit that market traded company?