Global policymakers have proposed a set of reforms to the international process for setting audit standards.
The Monitoring Group — which includes the Basel Committee on Banking Supervision, the International Organization of Securities Commissions, the Financial Stability Board, and International Association of Insurance Supervisors, along with other groups — has issued a consultation paper on options for enhancing the independence, relevance, and transparency of international audit standard setting.
The paper focuses primarily on the governance and structure of the standard setting boards (SSBs), the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants. It proposes reforms to the current structure, the role of the SSBs, their accountability, and the process for nominating members to the SSBs, along with the funding and oversight of the existing structure.
"The main purpose of the options for reform is to ensure that standard-setting serves the public interest," the paper says.
In a statement, the Basel Committee says it views the paper and the consultation process on reforms as "an important step towards improving audit standard setting."
Comments on the proposals are due by Feb. 9, 2018.