Irish Central Bank favours compulsory auditor dialogue

COMMUNICATION between the Central Bank of Ireland and auditors of banks could become mandatory, with the central bank currently consulting on a draft audit protocol.

This is partially is response to the Nyberg Report, which calls for “regular, compulsory dialogue” among banks, their auditors and the financial regulator with a view to supporting financial stability.

The bank hopes to develop terms of reference for “more structured communications” between auditors and supervisors resulting from the consultation, and is calling for submissions by 23 September.

Such regulations could also affect auditors of other major companies because the proposed plan relates “in the first instance” to banks, suggesting it could later be extended to other financial service providers and beyond.

Auditors will see the rules imposed no later than the new audit cycle in 2012, and the protocol will then be subject to annual review and updating.

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