European Parliament Library

External Audit Arrangements at Central Banks, Atilla Arda, Martin Gororo, Joanna Grochalska, Mowele Mohlala

This paper takes stock of external audit arrangements at central banks. Its focus is on the annual audit of central bank financial statements, as well as legal and institutional measures that support audit quality and independence. The paper outlines good practices in these areas and provides a summary of actual practices observed based on a review of audited financial statements and central bank legislation. While the audit frameworks for central banks differ depending on their legal and institutional circumstances, central banks’ external audits increasingly follow international standards. Most of them are audited by auditors with international affiliations and embrace modern governance structures that provide for audit oversight. However, the paper also notes that a sizeable number of central banks do not publish the audit results in a timely manner, which leaves room for improvement in transparency practices
Table Of Contents
Cover -- Contents -- ABSTRACT -- ACRONYMS -- I. OVERVIEW -- II. EXTERNAL AUDIT OBJECTIVE -- A. What is External Audit? -- B. Why are Financial Statements of CBs Audited? -- III. LEGAL CONSIDERATIONS -- A. Overview of Audit Frameworks in CB Legislation -- B. Audit Requirements in CB Laws -- IV. EXTERNAL AUDIT MECHANISM AT CENTRAL BANKS -- A. Audit Oversight -- B. Who Audits Central Banks? -- C. Transparency and Timeliness of Reporting -- V. EXTERNAL AUDIT IN IMF SAFEGUARDS ASSESSMENTS -- VI. REGULATORY AND PROFESSIONAL DEVELOPMENTS -- A. Independent Audit Regulators -- B. Mandatory Audit Rotation -- C. Other -- VII. CONCLUSION -- REFERENCES -- GLOSSARY OF TERMS -- BOXES -- 1: External Audit Provisions in CB Laws -- 2: Audit Committee Provisions in CB Laws -- 3: Auditors' Independence -- FIGURES -- 1: External Audit Attributes per CB Law -- 2. Those Responsible for External Auditor Appointment -- 3: External Auditors of Central Banks -- 4. Auditing Standards Applied in Central Bank Audits -- 5: External Auditors of CBs: 2017 vs 2013 Comparison -- 6. Statutory Deadlines for Completion of Annual Financial Statements -- 7: Timing of Audit Completion -- 8: Audit Completion Dates vis-a-viz Statutory Deadline -- 9: Age of Published Annual Financial Statements -- 10: External Audit Mechanism - Risk Ratings in Safeguards Assessments -- TABLES -- 1: Key Stakeholders of Central Bank External Audit -- ANNEXES -- 1: List of Central Bank Websites Visited -- 2: Audit Arrangements at CBs Subject to IMF Safeguards Monitoring -- 3: Regional Trends -- 4: Audit Profession Reforms
Literary Form
non fiction
Physical Description
1 online resource (43 pages)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU