The relationship between bank supervisors and external auditors (Joint task force)

The attached paper prepared by the task force reviews the respective roles of bank supervisors and external auditors, suggests certain criteria for the growing contribution in many countries of external auditors to the supervisory process and stresses the need for a continuing dialogue between the two.

The paper is being considered by the Basel Supervisors' Conunittee and the International Auditing Practices Committee for issuance as a joint statement which, it is hoped, will lay down a sound basis for promoting co-ordination between bank supervisors and external auditors. It has been approved for circulation at this stage as an exposure draft on which comments are invited. A separate project is being undertaken by the joint task force on the development of a guideline for the audit of international commercial banks.