BCBS consults on guidance for the external audits of banks

The Basel Committee on Banking Supervision has published for consultation guidance on the external audits of banks: see here (pdf). The guidance contains 16 principles which represent supervisory expectations with regard to the external audit and audit quality, including the role of the audit committee. It replaces earlier guidance published by the Committee (The relationship between banking supervisors and bank's external auditors, published in 2002, and External audit quality and banking supervision, published in 2008). The Committee has also written to the International Auditing and Assurance Standards Board with recommendations to improve some of the Board's Standards: see here (pdf).