The ECB began to shed light on what its priorities would be for 2016 and the 2015 year-end audit.
As 2015 wound down, the ECB began to shed light on what its priorities would be for 2016. In a number of speeches and presentations the ECB stressed that it would focus on transition to IFRS 9, business model and profitability, capital adequacy, governance, cyber risk, data quality and compliance with BCBS 239, credit risk and non-performing loans, and liquidity risk management; with a focus on increased harmonisation across the member states. Some of these are primarily audit and accounting issues (e.g., IFRS 9) while others will have an indirect impact to the audit and accounting functions at banks.
The ECB also reiterated the audit and accounting topics that they were concerned about during 2015. Among the key topics that will impact audit and accounting functions at banks this year (to list a few):
While there were a number of lessons learned under the first year of the SSM, there is still a great deal to manage. Below is a list of key questions raised by the ECB for the 2015 audits: