Brexit Risk Warning: No Mutual Recognition of U.K.-EU Auditors

British and E.U. auditors will end if a Brexit deal hasn’t been struck by the end of the year—39 days from now— the U.K. said Monday.

U.K.-qualified auditors could only practice in the EU from next year if they actually live in an EU country, rather than the U.K., the Department for Business, Energy and Industrial Strategy said in a letter to the Financial Reporting Council. This would only change if the U.K. and EU agree to recognize each other’s audit qualifications before Dec. 31.

• The U.K. left the EU in January, but is still haggling over the final terms ...