Regulatory Alerts2022-12-15
Investigation into CEAC at Audit Firms
The Netherlands Authority for Financial Markets (AFM) conducted an investigation into Client and Engagement Acceptance or Continuance (CEAC) at 30 audit firms with regular licenses, covering 83 statutory audits. The investigation found that 71 (86%) of the examined CEAC assessments were insufficient or untimely in at least one of three key areas, and 18 (60%) of the firms had deficiencies in their CEAC policies. The AFM expects audit firms to promptly study these findings, implement necessary improvements in their CEAC policies and execution, and ensure staff are adequately trained to meet regulatory requirements.
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