Basel Committee Publications - The relationship between banking supervisors and banks' external auditors

Basel Committeeon Banking SupervisionThe relationship betweenbanking supervisors andbanks' external auditorsConsultative Paper issued by the Basel Committee onBanking Supervision and the International Federation ofAccountantsIssued for comment by 12 June 2001February 2001Proposed International Auditing Practice StatementThe relationship between banking supervisors andbanks’ external auditorsThis International Auditing Practice Statement has been prepared in association with∗the Basel Committee on Banking Supervision. It was approved for publication as anexposure draft by the International Auditing Practices Committee and by the BaselCommittee.Banks play a vital role in economic life and the continued strength and stability of thebanking system is a matter of general public concern. The separate roles of banksupervisors and external auditors are important in this regard. The growingcomplexity of banking makes it necessary that there be greater mutual understandingand, where appropriate, more communication between bank supervisors and externalauditors.The purpose of this Statement is to provide information and guidance on how therelationship between bank auditors and supervisors can be strengthened to mutualadvantage, and it takes into account the Basel Committee’s Core Principles forEffective Banking Supervision. However, as the nature of this relationship variessignificantly from country to country the guidance may not be applicable in its ...