On July 26, 2016, the EBA published its final report on guidelines for communication between regulators supervising credit institutions and statutory auditors and audit firms carrying out the statutory audit of credit institutions. The Audit Regulation requires that effective dialogue must be established between regulators supervising credit institutions on the one hand and the statutory auditors and audit firms carrying out the audit of those firms on the other. The EBA’s Guidelines include an underlying general framework that should underpin communication between regulators and auditors at all times. The Guidelines include seven principles and detailed guidance relating to the main elements of effective communication. The seven principles address: (i) the scope and relevance of information shared; (ii) requests by regulators for information from auditors; (iii) the sharing of information with auditors by regulators; (iv) methods of communication and communication channels; (v) the identity, competence and knowledge of participants in the communication between regulators and auditors collectively; (vi) the frequency of information-sharing between regulators and auditors; and (vii) communications between regulators and auditors collectively (such as a group of auditors, or a professional body representing auditors). The Guidelines will be transposed into the official languages of the EU and will apply from March 31, 2017.
The Final Report is available at: http://www.eba.europa.eu/documents/10180/1531117/EBA-GL-2016- 05+%28Final+report+on+GL+on+communication+between+competent+authorities%29.pdf/d095b68c-17a1-40b3-9188- 5f9facc23886.