Code of Practice for Engagement with External Auditors of Financial Institutions

Overview

The Central Bank of Trinidad and Tobago has established a Code of Practice for Engagement with External Auditors of Financial Institutions. This code outlines guidelines for meetings between the Central Bank, financial institutions, and external auditors to ensure effective engagement and oversight.

Key Points

• Bilateral Meetings: Regular bilateral meetings will be held between the Central Bank (Relationship Officer, Senior Examiner, and Manager Supervision) and the External Auditor (Lead Audit Partner or delegate).
• Trilateral Meetings: Trilateral meetings may be scheduled annually or as necessary to discuss areas of concern and mutual interest. These meetings will include the Central Bank, External Auditor, and Chair of the Audit Committee or an Independent Director.
• Discussion Topics: Trilateral meetings may cover topics such as:
  • The audit process and material issues raised by the external auditor
  • Relevant issues affecting financial statement preparation or presentation
  • Operations and effectiveness of internal controls
  • Internal audit and compliance functions
  • Risk management and control arrangements

Code Review and Updates

• Code Review: The Code will be reviewed bi-annually to reflect changes in legislation, auditing practice, and other relevant developments.
• Scope for Other Bilateral Meetings: These meetings may include discussions on risk assessment, weaknesses identified in previous external audits, current key risks posed by the financial institution, audit strategy/approach, control functions, and views on key risk areas.

Purpose

The Code aims to promote effective engagement between the Central Bank, financial institutions, and external auditors to ensure robust oversight and risk management practices.