Regulatory Alerts2015-02-10
External Audit Framework for Banking and Non-Bank Financial Institutions
The Reserve Bank of Zimbabwe issued this guideline to establish a comprehensive regulatory framework governing the relationship, responsibilities, and communication between prudential supervisors, external auditors, audit committees, and bank management. The document mandates specific supervisory expectations for auditor independence, appointment procedures, and prompt reporting of material breaches, misstatements, and going-concern risks to enhance audit quality and financial stability. By replacing a 2004 framework, it standardizes information-sharing protocols and clarifies the distinct yet complementary roles of regulators and auditors in overseeing banking institutions' risk management and financial reporting.
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