This publication presents key findings from the World Bank CFRR survey – Financial supervisors and external auditors: building a constructive relationship that was conducted during the second half of 2014, and discussions with regulators conducted in 2015.

Responses from 35 supervisory authorities from the European Union and other countries in Eastern Europe, South Eastern Europe and the South Caucasus suggest that stronger two-way interaction between external auditors and supervisors can improve the quality of external audits and enhance banking supervision. This report highlights some actionable insights based on reported good practices that can be helpful to banking supervisors in managing their relationships with banks’ auditors. The report is can be used to define the necessary policies and guidelines towards building an enhanced collaboration between auditors and supervisors contributing to better auditing and supervisory practices.