FSB published a summary of topics discussed at the External Audit Roundtable, which was held in Toronto on June 06–07 and was hosted by OSFI, Canada. The objective of the Roundtable was to engage in constructive dialog on ways to promote international financial stability by enhancing public confidence in auditors and the quality of audits, especially for systemically important financial institutions.
Roundtable participants comprised senior representatives from FSB members, including national prudential authorities, market regulators and audit oversight bodies, the International Forum of Independent Audit Regulators (IFIAR), the international auditing standard-setter, and the six largest global audit networks. In the context of the objective of the Roundtable, the following areas were considered:
- The recurrence, level, and root causes of audit inspection findings identified by IFIAR members in their individual inspections of audit firms affiliated with the global networks
- Observations from initial audits of expected credit loss estimates under IFRS 9, including the audit work needed to assess the related governance and controls, management judgments and assumptions, and the resulting presentation and disclosures
- The global networks’ progress in preparing for the implementation of IFRS 17 and the related audits
- Support for IFIAR in promoting collaboration in regulatory activity to foster the effectiveness of audit oversight globally
- Effective avenues to strengthen the dialog between the official sector and the global networks, as a means to inform strong financial-sector policies to advance audit quality and promote international financial stability
- Characteristics of audit services, particularly for financial statement audits of systemically important financial institutions, and the potential implications for the role of financial reporting in international financial stability
- The importance of a robust and proactive approach by the global networks in continuing to improve audit quality
Related Link: Press Release
Keywords: International, Accounting, Banking, Insurance, Systemic Risk, SIFI, IFRS 9, IFRS 17, External Audit, Financial Stability, FSB
Previous ArticleAPRA Updates Implementation Plan for New Data Collection Solution
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.