On 17 January 2019, the International Organization of Securities Commissions (IOSCO) published a report setting out its views on good practices for audit committees of listed companies in supporting external audit quality. The report notes that whilst the auditor has primary responsibility for audit quality, the audit committee should promote and support quality and thereby contribute to greater confidence in the quality of information in the listed company’s financial reports. The report is therefore intended to help audit committees in considering ways in which they may be able to promote and support audit quality.
The report provides good practices that audit committees may consider when:
- recommending the appointment of an auditor;
- assessing potential and continuing auditors;
- setting audit fees;
- facilitating the audit process;
- assessing auditor independence;
- communicating with the auditor; and
- assessing audit quality.