IOSCO issued its recommended "good practices" for the
"audit committees of listed companies in supporting and
promoting external audit quality."
In a report, IOSCO stated that the quality of a company's
financial report is important to "market confidence and
informed investors, and to the effective functioning of capital
markets." IOSCO further said that the audit committee has an
important role in maintaining the quality of the financial report.
While the auditor has primary responsibility for audit quality,
IOSCO advised, the audit committee must foster and support audit
quality, which provides for investor confidence in the
company's financial reports.
According to IOSCO, "good practices" include:
