European Database on Audit Inspection Findings
The EAIG maintains a common database to collect and exchange findings of its member organisations from their local inspections of audit firms. The non-public database contains inspection findings in relation to the ten largest European networks of audit firms (PwC, KPMG, Deloitte, EY, BDO, Grant Thornton, Nexia International, Baker Tilly, Mazars, and Moore Stephens).
The database is used by the EAIG to identify common issues in relation to particular networks or the application of particular standards by audit firms in practice. This contributes to the on-going dialogue of the EAIG with the networks, the audit profession at large and standard setters such as the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board (IESBA) as well as the Public Interest Oversight Board (PIOB).
Common Audit Inspection Methodology (CAIM)
Following the EAIG’s objective to promote cooperation and consistency amongst European audit regulators, a common approach for the performance of inspections is being developed by the EAIG.
The Term of References are included in this document:
The Common Audit Inspection Methodology (CAIM) will be structured into several modules for specific focus areas of an inspection. The first module for the review of the internal quality control system of audit firms has been completed based on common practice in the performance of inspections and is intended to be implemented by independent audit regulators from 2015 onwards.
The EAIG continues to develop further modules of CAIM for various aspects of the file reviews performed during an inspection, i.e. the review of the performance of selected audit engagements.
The second module provides inspection procedures on audit engagement reviews regarding accounting estimates and group audit.
The second module is intended to be implemented by independent audit regulators from 2016 onwards.
Banking/Financial Services sub-group
The EAIG has set up a sub-group of experts for the inspections of bank and other financial institution audits.
This sub-group consists of regulators that deal with GSIB’s and GSII’s. Here this subgroup will facilitate the exchange of practices and findings amongst European audit regulators in relation to the audits of financial institutions. This is also a platform that engages EBA, EIOPA and ESMA in FSI matters.
Dialogue with the audit profession
The EAIG has entered into an on-going dialogue with the audit profession with a particular focus on the largest European networks of audit firms. Discussion topics include the networks’ role in audit quality and current issues and trends related to audits and their environment. The EAIG will also share findings and observations from inspections in relation to each network and discuss measures for remediation.
The EAIG is setting up sub-groups for each of the four largest European networks of audit firms. These sub-groups are responsible for preparing and facilitating the on-going dialogue with their respective firm. The previously established Colleges of Regulators in relation to the EY Europe LLP and the former KPMG Europe LLP have been incorporated into these sub-groups.
Dialogue with standard setters
One of the EAIG core activities is a regular dialogue with international standard setters such as the International Auditing and Accounting Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA). By providing a common platform for discussions, the EAIG facilitates the development of individual comment letters of its members to these standard setters as well as joint comment letters by audit regulators.
The following comment letters have been issued by several European audit regulators. The comment letters represent only the views of the individual audit regulators that signed up to the respective letter. They are therefore not to be considered as a view of the EAIG as a group or other EAIG member organisations not mentioned in the respective letter.
Ethics : responses to IESBA consultations
Suspected illegal acts
23 January 2013
Proposed Strategy and Work Plan, 2014-2018
28 February 2014
Auditing standards: responses to IAASB consultations
ISA 610 – Using the Work of Internal Auditors
12 November 2010
Clarified ISA implementation
17 October 2012
Audit reporting – response to IAASB invitation to comment
23 October 2012
IAASB Audit Quality Framework
11 June 2013
ISAs on Audit Reporting
20 November 2013