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29 September 2016

FEE: Scope of audit of banks across Europe - 2016 update


FEE information paper provides an update to the 2015 survey on the audit profession’s involvement with the financial and regulatory reporting for banks.

While in 2015 FEE focused more on the overall involvement of the auditor in the audit of banks in Europe, FEE now further specifies whether the requirements for assuring regulatory reporting either form part of the statutory audit of financial statements or are separate audit, assurance and other engagements.

FEE received information from 30 countries (compared to 27 in 2015) including the 19 member countries of the Eurozone. The results of the survey reveal that the audit of financial statements, management reports, and compliance with laws and regulations fall within the scope of the statutory audit in all 30 countries. Both for 2015 and 2016, there is a divergence in practice regarding the scope of the audit of banks. Specifically for 2016, this divergence occurs also when it comes to additional supervisory requirements.

These inconsistencies can negatively affect the supervisory level playing field across Europe. Having one banking supervisor for the Eurozone should result in a more coordinated approach to tackle the divergence in practice and better align regulatory policy, which could benefit all the stakeholders involved.

Full information paper



© FEE


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