Scope of the information shared

Competent authorities should identify in collaboration with auditors the areas of common interest to competent authorities and auditors, where sharing of relevant information may facilitate the task of supervision and potentially have an impact on the statutory audit.

When considering what information to share, due consideration should be given to the materiality of the information, including the likely magnitude and possible impact on the supervision and the statutory audit of the credit institution.

The type of information to be shared may be:

• a. institution-specific
• b. industry-specific
• c. current issues
• d. emerging issues.

The Annex to these guidelines provides a non-exhaustive list of areas and issues on which information could be shared between competent authorities and auditors.

To assist effective communication and sharing of information, and when practicable, competent authorities should prepare a list of issues for discussion. Competent authorities should consult auditors on the appropriateness of this list before the communication takes place and encourage them to contribute to it.

Principle 2: Competent authorities should request auditors to share information on any issues which are relevant to the supervision of the credit institution.

The information requested may include information related to the audit procedures performed, relevant audit evidence obtained and auditors’ conclusions, whenever, in the competent authority’s judgement, such information may facilitate the exercise of supervisory tasks.

Relevant information is information and knowledge obtained in the statutory audit and related, but not limited, to the following areas, which are described in further detail in the Annex to these guidelines with a non-exhaustive list of issues under each of them:

• a. External environment and risk profile of the credit institution
• b. Corporate governance and internal controls
• c. Ability of the credit institution to continue as a going concern
• d. Audit approach
• e. Financial statements, valuation of assets and liabilities and disclosures
• f. 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
• g. The main findings of the audit procedures carried out and conclusions.

Where in-depth communication is applied, competent authorities should discuss with auditors, at least, the audit approach, the audit report and the 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, including the audit report and the additional report to the audit committee referred to, respectively, in Articles 10 and 11 of Regulation (EU) No 537/2014 and as described in more detail in the Annex to these guidelines. In particular, for the discussion of the audit approach, competent authorities may take into consideration any findings or conclusions from the supervision of the credit institution.

Principle 3: Competent authorities should share information with auditors on issues which are relevant to the statutory audit of the credit institution.

Relevant information which should be shared between competent authorities and auditors includes issues that emerge during the process of supervision and which in the competent authority’s judgement could be of relevance to the statutory audit of the credit institution.

Relevant information is information and knowledge emerging during the process of supervision and related, but not limited, to the following areas, which are described in further detail in the Annex to these guidelines with a non-exhaustive list of issues under each of them:

• a. External environment and risk profile of the credit institution
• b. Corporate governance and internal controls
• c. Ability of the credit institution to continue as a going concern
• d. Financial statements, valuation of assets and liabilities and disclosures
• e. Supervisory assessments and actions.

In addition, competent authorities may communicate to auditors any current or emerging issues affecting the credit institution’s industry, such as changes in regulation or macroeconomic developments and results of thematic and peer-group reviews performed across the credit institution’s industry.