| LONDON, March 15
LONDON, March 15 The Financial Stability
Board is putting pressure on auditors to flag concerns they have
to supervisors about banks and insurers whose books they check.
It marks a broadening of the FSB's reach into the financial
sector and related services as regulatory task force to the
world's top 20 economies (G20).
"Promoting high quality international accounting and
auditing standards and practices is an important aspect of the
FSB's activities," the board, chaired by Bank of Canada Governor
Mark Carney, said on Thursday.
The financial crisis showed there was a need to improve the
role auditors play in providing information to supervisors about
financial institutions, it said.
The FSB wants greater international consistency in audit
practices and has requested action from several global bodies.
Politicians have questioned why banks were given a clean
bill of health by auditors and then having to be rescued by
taxpayers only months later as the financial crisis unfolded.
The European Union has already proposed a draft law to
tighten supervision of a sector dominated by the so-called "Big
Four": KPMG, PwC, Ernst & Young and Deloitte.
The FSB said it will work with the global Basel Committee on
Banking Supervision as it "develops new robust external audit
guidance, to be proposed by end-2012".
There will be a similar initiative with the International
Association of Insurance Supervisors for the insurance sector.
The FSB will request that the International Forum of
Independent Audit Regulators reports on problems members face
when inspecting audits of banks, especially large, systemically
The board will check how the IFIAR has dealt with such
problems and what it is doing to improve things.
The FSB said IOSCO, an umbrella group of global markets
supervisors, has agreed to examine efforts by accounting
standards boards to improve the information investors get from