IFAC Response to Prudential Regulation Authority’s Consultation Paper on Engagements between External Auditors and Supervisors

IFAC welcomes the UK Prudential Regulation Authority (PRA)’s emphasis on the importance and relevance of the auditor-supervisor relationship, but urges care in developing and implementing new requirements for written auditor reporting to supervisors.

Auditors’ primary role is forming an opinion on financial statements and it is vital that the new requirements are established with full mindfulness of this context and relevant auditor responsibilities, including mandatory auditing and ethical standards.

IFAC proposes that it will be crucial to establish a regular dialogue between the auditing profession, UK Financial Reporting Council, and PRA to exchange views in order to address specific, practical issues in regard to reporting contemplated by the PRA for any given year.