Central Bank Audit Practices

Central Bank Audit Practices describes common approaches, practices and trends relevant to the audit of central banks, with a view to supporting public administration reform efforts in central and eastern European countries. The study provides a basis for further discussion between decision-makers and practitioners on how the audit regime could be developed to ensure good governance of central banks. This study originates from a discussion on today’s important audit issues which was arranged by the European Court of Auditors together with the presidents of supreme audit institutions (SAIs) of central and eastern European countries and held in Luxembourg on 21-23 October 1996. Follow-up discussions between representatives of SAIs and central banks and SIGMA made it apparent that a focused comparative study could be of high value to officials with responsibilities for the design of audit strategies and policies, as well as to auditors. From the outset it was decided that the study should focus on auditing of central bank activities and not on banking. This meant that aspects of the banking system, such as the regulatory structure of financial institutions or supervision of the financial sector, although very interesting and relevant, have been excluded from the scope of the study or are only briefly mentioned. The study is furthermore limited in that it provides an overview of four European Union Member States (Germany, Ireland, the Netherlands and Sweden). These countries do not represent the entire variation to be found in the EU. The reader is also asked to keep in mind that current practices might undergo important changes as a result of the introduction of the European Economic and Monetary Union.