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The Basel Committee on Banking Supervision welcomes the Monitoring Group's consultation paper, Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public Interest, and views it as an important step towards improving audit standard setting.
The Monitoring Group is committed to periodically reviewing the effectiveness of audit standard setting.
The consultation paper is the product of the Monitoring Group's latest review, which began in 2016, and sets out options and recommendations to further enhance the governance and oversight of audit standard setting.
The consultation paper focuses on the governance and structure of the SSBs that support auditing as a public interest activity, namely the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants.
The proposal is far-reaching, setting out the main areas of concern regarding the current structure and considering, among other matters, the number, remit and size of the SSBs and their staffs; the accountability of the SSBs to IFAC; the process for nominating members to the SSBs; the roles of the PIOB and the Monitoring Group; and the means by which the structure is funded.
Readers are strongly encouraged to respond by Friday 9 February 2018 to the Monitoring Group consultation paper.