Implementation of the plan will take three years and result in overall improvements to the international audit-related standard-setting system.
The Monitoring Group has announced that it has completed the development of a transition plan to improve international audit standards and begun work on implementation.
The Monitoring Group is a group of international financial institutions and regulatory bodies committed to advancing the public interest in areas related to international audit standard setting and audit quality.
Its members include the BCBS (Basel Committee on Banking Supervision), European Commission, FSB (Financial Stability Board), IAIS (International Association of Insurance Supervisors), IFIAR (International Forum of Independent Audit Regulators), IOSCO (International Organization of Securities Commissions), and the World Bank.
In July 2020, the Monitoring Group issued its recommendations for strengthening the international audit and ethics standard-setting system.
The recommendations were designed to achieve an independent and inclusive, multi-stakeholder standard-setting system; reinforce public interest considerations within the standard-setting process, with enhanced independent oversight; and foster the development of timely, high quality standards that respond to an accelerating pace of change.
Since the recommendations were published, a transition plan has been developed that will involve engagement with key stakeholders and the execution of 26 work streams.
Implementation of the transition plan has now begun, initially focusing on the appropriate sequencing of activities to implement the recommendations and on establishing a sustainable funding model.
The implementation phase will take three years, and result in overall improvements to the international audit-related standard setting system, which should lead to improved audit quality for the benefit of users of financial statements.