On 29 September 2023, the PRA issued a statement setting out its conclusions following an evaluation of the Written Auditor reporting policy, to assess how it is delivering against its original objectives. The statement also sets out how the PRA will continue to refine its approach to the policy to make it a more efficient and effective supervisory tool.
Supervisory Statement 1/16 ‘Written reports by external auditors to the PRA’ sets out the PRA’s expectations of auditors in relation to the requirement to provide written reports to the PRA concerning the audit of major banks and building societies as set out in chapter 8 of the Auditors Part of the PRA Rulebook.
The PRA has also issued a Dear Chief Financial Officer letter concerning thematic feedback from the 2022/23 round of written auditor reporting. Each year, the PRA receives a written report from firms’ auditors responding to its questions on issues of supervisory interest. This year, questions related to IFRS 9 expected credit loss accounting, accounting for climate-related financial risks. The letter sets out the main feedback from the PRA’s review of auditors’ responses with further detail set out in the annexes.