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Auditors should refer to this statement both at the stage where the questions are discussed and agreed and when the report is being prepared and submitted.
The regime will give auditors earlier and more consistent insights into regulatory concerns that may be relevant to their statutory audit in advance of their main audit work, and will encourage supervisors to focus on questions which are most relevant to what auditors do during the statutory audit that are also of interest to prudential supervisors.
Overall, the purpose is to improve the quality, focus, and discipline of the auditor-supervisor dialogue, so as to identify and address emerging concerns more effectively and so support the PRA’s statutory objectives regarding safety and soundness.
The questions the PRA expects auditors to answer in their reports each year are broadly the same across all the audited firms in scope for that year.
The statement includes chapters on: logistical and timing issues; scope of questions and content of report; disclosure of the report; cooperation with the PRA and interaction with other duties; and duties of auditors and firms.