Interactions between Those Charged with Governance and Regulators
76. As with management, the extent to which financial regulators interact with those charged with governance varies between countries and industries.
77.
While there has been relatively little interaction between audit regulators and those charged with governance to date, the potential for this exists. For example, in some jurisdictions audit regulators communicate, or require the auditors to communicate, the findings from inspections of individual audits to those charged with governance of the relevant entities. Furthermore, audit inspectors might seek the views of those charged with governance on the quality of individual audits as part of their inspection activities.
4.9
Interactions between Those Charged with Governance and Financial Statement Users
78.
In a number of countries, those charged with governance, including audit committees where they exist, have specific responsibilities for a degree of oversight of the auditors or aspects of the audit process. Users’ perceptions of audit quality are likely to be enhanced by the active involvement of a high-quality, transparent audit committee. However, there is considerable variability in the degree to which those charged with governance communicate to users the way in which they have fulfilled their responsibilities.
4.10 Interactions between Regulators and Financial Statement Users
79. External inspection of audit quality takes place in a growing number of countries as part of independent audit oversight arrangements. Audit regulators usually report publicly on their activities in overall terms and this can give users an impression of audit quality generally. Some oversight
25 bodies report publicly on their findings relating to individual audit firms and this will provide users with more specific information.
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