Consultation on international audit-related standard-setting boards

In this submission the AICD welcomed the Monitoring Group’s consultation and its objective of enhancing the governance of the international audit-related standard-setting process, noting that confidence in financial reporting and, in turn, the integrity of financial markets relies on audits conducted in accordance with standards developed through robust governance systems. We supported the principles, as set out in the consultation document and recommended that any revised governance framework needed to achieve the following outcomes:

• International acceptance and consistency of standards
  
• Scalable standards
• Principle-based standards

Overall, the AICD considered that in order to properly assess any reform options, consultation is required on all of the material aspects of the proposed governance frameworks, including the funding arrangements. We noted that a holistic approach to the review is preferable to a staggered or piecemeal approach. Accordingly, we considered that the current proposal was incomplete, and welcomed further consultation on a more encompassing framework than has been provided.