Ward said that he welcomed the SEC's latest rulemaking on audit independence, and added that "the SEC has begun to recognize the often unforeseen results of implementing a U.S. regulatory regime in the global marketplace."

"However, more needs to be done," he said. Ward hopes that the SEC will consider entering a mutual recognition agreement with the Institute that would recognize the strength of the UK's framework approach to independence.

In the UK, the ICAEW works with the Financial Services Authority to regulate auditor independence amongst its members.

Ward explained that the SEC had already given careful consideration to the UK threats and safeguards approach. "We are encouraged by their stated willingness to work closely with us and other international bodies to develop workable and effective guidelines which transcend national boundaries."

The UK approach to regulating audit independence relies on a code of ethics and peer review. UK concepts have been adopted abroad through the International Federation of Accountants and the Fédération des Experts Comptables Européens.

Ward has held a number of discussions with the SEC over the last three months. He hopes to foster a closer relationship with the SEC so that the Institute can better address the interests of UK-based firms that audit SEC registrants.

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