IOSCO consults on auditing issues

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21 Sep 2009

The International Organization of Securities Commission (IOSCO) Technical Committee has launched three related consultation reports prepared by its Task Force on Audit Services. The three IOSCO reports address:

  • Transparency of firms that audit public companies. This paper explores whether enhancing the transparency of audit firms' governance, audit quality indicators and audited financial statements could maintain and improve audit quality and the availability and delivery of audit services.
  • Auditor communications. This paper considers whether changes to the standard audit report or additional auditor communications are warranted to address concerns about the effectiveness of the standard audit report in communicating important information about the audit and audit process to investor.
  • Ownership structures for audit firms. This paper focuses on the impact of audit firm ownership restrictions on concentration in the market for auditing large issuers. The paper describes the current state of audit firm concentration and explores the potential benefits for audit service availability of removing ownership restrictions and discusses the adverse impact that removing ownership restrictions may have on audit firm competence, professionalism, independence, and audit quality. The paper also considers the pros and cons of authorizing alternative forms of audit firm ownership and governance.

Comments are requested by 1 December 2009. Click to download:

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