Public Oversight Of Statutory Auditors

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Jon HooperHead of International Relations

UK Financial Reporting CouncilIFIAR Secretariat

Public Oversight of Statutory Audit

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What I will coverWhat I will cover

What is oversight of statutory audit? Process of establishing audit oversight The 2 models of audit oversight Components of audit oversight What we can share Questions and discussion

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What is audit oversight?What is audit oversight?

Oversight of the regulation of statutory auditors required by the EU’s Statutory Audit Directive

Can be direct or indirect

If indirect, must have ‘ultimate responsibility’ in certain areas

No need to ‘reinvent the wheel’

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Process of establishing and Process of establishing and improving audit oversightimproving audit oversight

Law Board

ProceduresPolicy

ResourcesImplement

Review

Constant improvement

Peer comparisons

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The 2 models of audit The 2 models of audit oversightoversight

Direct oversight of auditors

Oversight of professional body(ies)

Combination of both i.e. different for auditors of PIEs

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Components of audit oversightComponents of audit oversight

Qualification and education

Licensing

Registration

Quality control

Complaints, investigation and discipline

Standards and other policy/regulations

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What we can shareWhat we can share

Methodology of overseeing/ inspecting professional bodies (4 in UK)

Audit inspection methodology (UK FRC’s and up to 30 others)

Commercially available UK audit methodology for smaller auditors

Experiences and TA from 34 IFIAR member countries