The International Organization of Securities Commissions (IOSCO) is requesting feedback on its proposed good practices for audit committees to support audit quality, the group announced on Tuesday.
“Findings of reviews by audit regulators indicate a need to improve audit quality and consistency of audit execution,” IOSCO says in a news release.
Audit firms are primarily responsible for ensuring the quality of their work, IOSCO acknowledges, but effective audit committees can also contribute to this objective. Effective committees would, in turn, increase investor confidence in the quality of financial reports, IOSCO says.
The paper sets out qualifications and experience requirements for audit committee members. It also proposes best practices for assessing potential auditors, evaluating audit fees, facilitating the audit process and communicating with the auditor.
Comments on the proposals are due by July 24.