6. Communication between competent authorities and auditors collectively

Competent authorities and auditors collectively (such as a group of auditors or a professional body representing auditors) should aim to develop a common understanding of current and emerging developments of relevance to the supervisory tasks and the statutory audit of credit institutions.

Competent authorities should meet with auditors collectively at least annually and irrespective of the meetings organised on an individual basis between the competent authority and the auditor of one or more credit institutions.

Communication could take place during any phase of the supervisory processes or the audit processes, and competent authorities should consult auditors on the appropriateness of the frequency and timing of communication.

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 collectively, as appropriate.

If in the competent authority’s judgement it could facilitate the exercise of supervisory tasks, competent authorities may invite other competent authorities responsible for the prudential supervision of credit institutions or relevant public authorities (such as those responsible for the supervision of financial markets or for the public oversight of auditors) and associations (such as associations representing the banking, accounting or auditing industry) to these collective meetings or inform these authorities and associations of the outcome of the discussions with the auditors.