A key goal of independent oversight is to provide relevant and reliable information to investors, lenders, audit committees, regulators, other stakeholders, and the general public about auditors and the audit market, among other matters.
High quality reporting by audit oversight bodies (“AOBs”) plays a pivotal role in enhancing transparency in audit quality and contributes to a continuous improvement in the quality of auditing. Reporting by AOBs should aim to explain its tasks, targets and competencies; provide guidance for stakeholders; and provide information on its future activities. Importantly, good reporting by AOBs should demonstrate how their activities are making a difference to the financial reporting ecosystem and on audit performance.
This paper aims to provide a brief synopsis on the topic of reporting by AOBs through their annual and inspection reports. It outlines international principles and legislative requirements, highlights certain good practices and shares results from a focused survey across EU-REPARIS (Albania, Republic of Macedonia, Montenegro, Kosovo, Serbia, and Bosnia Herzegovina) and STAREP countries (Moldova, Georgia, Azerbaijan, Armenia, Belarus, and Ukraine).