Guidelines on the Relationship Between External Auditors of Licensees and the Central Bank
Published: Wednesday September 6th, 2006
Amended: Tuesday April 15th, 2014
The external auditor of a licensee plays an essential role in the regulatory framework, which requires an open, cooperative and constructive relationship with the Central Bank to achieve the desired level of supervisory oversight and monitoring. Therefore, the aim of these Guidelines is to enhance the regulatory process and promote effective partnership between the external auditors and the Central Bank. These Guidelines take into account aspects of the Basel Committee’s paper, The Relationship between Banking Supervisors and Banks’ External Auditors issued in 2002. In this context, the Guidelines set out parameters for reporting and dialogue between the external auditor and the Central Bank, including their respective responsibilities and the scope of information to be disclosed. As of 1st September 2010, the appointment of the external auditors of a licensee is no longer subject to the prior approval of the Central Bank. However, licensees are required to inform the Central Bank of the appointment their external auditors. These Guidelines therefore set out minimum criteria, which the Central Bank expects licensees to utilize in appointing an external auditor.