IOSCO published a consultation report on good practices for audit committees in supporting audit quality. The report is intended to assist audit committees of issuers of listed securities in promoting and supporting audit quality. Comments can be submitted by July 24, 2018.
The consultation report proposes good practices regarding the features that an audit committee should have to be more effective in its role, including delineating the qualifications and experience that audit committee members should possess. The report also proposes good practices that audit committees may consider when:
- Recommending the appointment of an auditor to members/shareholders
- Assessing potential and continuing auditors
- Assessing the audit fees
- Facilitating the audit process
- Communicating with the auditor
- Assessing auditor independence
- Assessing audit quality
Findings of reviews by audit regulators indicate a need to improve audit quality and consistency of audit execution. The findings also reveal that practices of audit committees within the same jurisdiction, and across jurisdictions, can vary from one listed entity to the next, leading to a lack of consistency in the way audit committees carry out their responsibilities. IOSCO considers the accuracy, integrity, and comparability of issuer disclosure to be essential for maintaining investor and market confidence.
Comment Due Date: July 24, 2018
Keywords: International, Securities, Accounting, Audit Committee, Good Practices, Disclosures, IOSCO
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