New framework for cross-border cooperation on audit supervision

The newly created Committee of European Auditing Oversight Bodies (CEAOB) held its inaugural meeting yesterday, 12 July 2016, in Brussels. Established by the Audit Regulation, the CEAOB is the new framework for cooperation between national audit oversight bodies at EU level.  The CEAOB will help strengthen EU-wide audit oversight, a key objective of the new EU legislation on statutory audit that took effect on 17 June 2016. By facilitating supervisory convergence, the CEAOB will contribute to achieving the effective and consistent application of the new EU audit legislation throughout the EU. This will help promote high-quality audits and bolster investors’ confidence in the financial sector. Auditors and audit firms also have an essential role to deliver this important challenge. Members of the CEAOB include representatives of the national audit oversight bodies of the EU and of the European Securities and Markets Authority (ESMA). Representatives of the national audit authorities of the European Economic Area also participate. The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) are observers. During its inaugural meeting, the Committee appointed Ralf Bose, Chief Executive Director of Germany’s Auditor Oversight Body (AOB), as Chair of the CEAOB for a four-year mandate by consensus. Ralf Bose commented: ‘I am delighted and thankful to have been entrusted with the mandate of Chair of the CEAOB. In the early days, I will focus my mandate on getting the CEAOB up and running, with the support and input of all the CEAOB members and observers and the European Commission. These are exciting and challenging times for statutory audit in Europe as the new EU audit legislation takes effect. I look forward to the CEAOB playing its full role in improving both audit quality and investor confidence in audits through effective communication’. On 11 July, the European Commission also appointed a representative as Vice-Chair of the CEAOB. The Director responsible for audit policy in the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) will fulfil this role. Further information on the CEAOB will soon be available here.