By James Hamilton, J.D., LL.M.
An International Forum of Independent Audit Regulators has been created to share knowledge of the audit market environment and practical experience of independent audit regulatory activity. The forum will also promote regulatory collaboration and provide a focus for contacts with other international organizations that have an interest in audit quality. The PCAOB participated in the initial roundtable meeting as an observer. Other organizations that participated at the roundtable as observers were the Financial Stability Forum, IOSCO, the Basel Committee, and the European Commission.
At the initial roundtable, the independent audit regulators discussed a number of issues, including the methods audit regulators can employ to share the information necessary for their effective oversight. They also examined the drivers of audit quality and reviewed what audit regulators can do collectively to enhance the quality of audit. The roundtable also took note of the debate in the UK on competition and choice in the audit market and discussed the issues arising from it. Members of IFIAR will continue to exchange views on developments in this area from the regulators’ perspective.
The Forum appointed as inaugural chair Jeffrey Lucy, Chairman of the Australian Securities and Investments Commission, to serve for a one-year term. The Vice-Chairman will be Paul Boyle, CEO of the UK Financial Reporting Council, who will serve for a term of 18 months. The first full meeting of the IFIAR will take place in March 2007 in Tokyo, to be hosted by the Japanese Certified Public Accountants and Auditing Oversight Board (CPAAOB).