Frequency and timing of communication

Competent authorities should establish an appropriate frequency and timing of communication with auditors which enables timely sharing of information about relevant issues identified during the performance of their respective tasks.

Competent authorities should consult auditors on the appropriateness of the frequency and timing of communication.

Communication could take place during any phase of the supervisory processes or the audit processes, including one or more of the following:

• a. during the preparation and planning of supervisory inspections (on-site or off-site)
• b. during the performance of supervisory inspections (on-site or off-site)
• c. after completion of supervisory inspections (on-site or off-site)
• d. during the preparation and planning of the statutory audit
• e. before signing of the audit report
• f. after signing of the audit report.

Competent authorities should assess on an on-going basis whether there are any emerging issues that require the frequency and timing of communication to be changed or the initiation of communication on an ad hoc basis. These may include issues affecting the credit institution’s entire industry or part of it (such as macroeconomic conditions) or issues affecting a particular credit institution (such as findings during the performance of supervisory processes or audit procedures, or cases when further clarifications on a specific issue are necessary).

When in-depth communication is applied, a bilateral meeting should be held at least on an annual basis.