Our Role in relation to Audit and Auditors

We do not have responsibility for maintaining a general oversight regime for the audit profession in Jersey.

We do however, have specific responsibilities to ensure audits of Jersey companies are performed by Auditors who are registered with the JFSC, as prescribed by Part 16 of the Companies (Jersey) Law 1991.

Recognised Auditors

In 2010, a common regulatory regime for Recognized Auditors was introduced in Jersey, Guernsey and Isle of Man (Crown Dependencies).

This regime established a mandatory audit requirement for Jersey companies which are listed on an EU/EEA recognized market (a Jersey market-traded company) by an auditor who has been granted permission by the JFSC to audit a Jersey market-traded company (a Recognized Auditor).

In order to be granted equivalence in respect of the EU’s Statutory Audit Directive, as well as ensuring a consistent supervisory approach across the Crown Dependencies, the Crown Dependencies agreed with the relevant authorities in England and Wales, that they would be responsible for the oversight and supervision of Crown Dependency Recognized Auditors (the Supervisory Authorities).

In practice, this means that we are responsible for registering a Recognized Auditor to enable them to carry out an audit of a Jersey market-traded company. We are also responsible for ensuring entries on the Register of Recognized Auditors including their responsible individuals who are permitted to sign off on an audit of a Jersey market-traded company.

The oversight, inspection and monitoring of Recognized Auditors, in relation to their Jersey market-traded company clients are undertaken by the following Supervisory Authorities:

• The Financial Reporting Council (FRC) who is the monitoring unit for FTSE 250 companies;
• The Institute of Chartered Accountants in England and Wales (ICAEW) who is the monitoring unit for other Jersey market traded companies, except in the circumstances where Jersey market traded companies have appointed a Recognized Auditor which is domiciled in Ireland; and
• The Institute of Accountants in Ireland (ICAI) who is the monitoring unit for Jersey market traded companies who have appointed a Recognized Auditor which is domiciled in Ireland. 

Further information regarding the Recognized Auditor regime is available on our dedicated Recognised auditor’s website pages.

Discretionary authorisation of auditors

In certain circumstances, we will grant discretionary authorisation to audit firms who wish to audit a Jersey company which is not a Jersey market-traded company. A criteria was developed to enable the assessment of such audit firms which is available on the JFSC website. Oftentimes, this audit firm engages the expert advice of a Recognized Auditor or other Jersey Auditor to ensure that any audited accounts submitted to the Registry meet the requirements of the Companies (Jersey) Law 1991.

These firms do not have an oversight, monitoring or inspections regime arranged or facilitated by the JFSC but may be subject to some level of oversight by the competent authority in their home jurisdiction.