Principles of Auditor Independence and the Role of Corporate Governance in Monitoring an Auditor’s Independence

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IOSCO set Principles that should govern independence of auditors of financial statements of listed entities. Issuing these Principles reflects the interest of securities regulators in ensuring that auditor independence requirements contribute to promoting investor confidence in published financial statements, irrespective of whether such requirements are the responsibility of securities regulators in their jurisdictions. The Statement also sets forth principles relating to the oversight of an external auditor’s independence by a body or bodies within an entity’s corporate governance structure (“audit committee”).