Code of Practice for Engagement with External Auditors of Financial Institutions

CENTRAL BANK OF TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 625-4835; 4921; 5028; Fax: (868) 627-4696 E-Mail Address: info@central-bank.org.tt Website: www.central-bank.org.tt

March 20, 2018

CIRCULAR LETTER TO:
FINANCIAL INSTITUTIONS REGULATED UNDER
THE FINANCIAL INSTITUTIONS ACT, 2008
INSURANCE COMPANIES REGISTERED UNDER THE
INSURANCE ACT CHAP 84:01 AND
INSTITUTE OF CHARTERED ACCOUNTANTS OF
TRINIDAD AND TOBAGO (ICATT)

REF: CB-OIFI-668/2018

CODE OF PRACTICE FOR ENGAGEMENT WITH EXTERNAL AUDITORS OF FINANCIAL INSTITUTIONS

The Central Bank of Trinidad and Tobago (“Central Bank”) advises that the Code of Practice for Engagement with External Auditors (“Code”) has been finalized and posted on the Bank’s website at https://www.central-bank.org.tt/publications/legislations-and-guidelines/banking-sector-legislation-and-guidelines.

We therefore wish to express our thanks to the Institute of Chartered Accountants of Trinidad and Tobago (“ICATT”), the Bankers Association of Trinidad and Tobago (“BATT”), the Association of Trinidad and Tobago Insurance Companies (“ATTIC”) as well as the banking and insurance industries for their contributions¹ which assisted in the finalizing of the Code.

The objective of the Code is to enhance the Central Bank’s regulatory process by promoting an effective relationship between the external auditor of a financial institution and the Central Bank in a context that would foster enhanced supervisory review and also contribute to high quality external audits. As a consequence, this Code sets out principles that establish, in the context of a particular financial institution:

a) the nature of the relationship between the Central Bank and external auditor; b) the form and frequency that communication between the two parties should take; and c) the responsibilities and scope for sharing information between the two parties, subject to the availability and accessibility of information to either party.

The Central Bank looks forward to your continued cooperation as we embed the Code in our supervisory framework.

Yours sincerely

[Signature]

Patrick Solomon
INSPECTOR OF FINANCIAL INSTITUTIONS

¹ The Central Bank’s responses to your comments have been posted on the website at https://www.central-bank.org.tt/core-functions/supervision/banking-sector-draft-consultation-papers.