Form of communication

The form of communication can be broadly categorised as:

•  written (for example email or fax) and oral (for example physical meetings or remote communication, such as phone calls)
•  regular (for example audit reports) and ad hoc (for example the text of new regulations).

Written communication should be used in cases when there is a need to ensure clarity or for retaining a record of the communication. Competent authorities should consider the use of written communication when communication relates to the following:

•  Audit report and auditors’ communication with the credit institution’s management body, senior management or audit committee, or a body performing equivalent functions within the credit institution, on significant matters related to financial reporting and control functions
•  Findings and conclusions from audit procedures performed and supervisory processes
•  Complex technical matters
•  Emerging issues
•  Changes in regulation.

Physical meetings between competent authorities and auditors should be held to facilitate open and effective communication, particularly when in-depth communication is applied.