Auditors are tasked with protecting the integrity of financial reporting ,but who protects the public from audit failure? The answer lies in a network of national and international audit regulators: organisations with the mandate to inspect, discipline, and guide audit firms in their pursuit of accountability.

From Washington to Johannesburg, these bodies enforce the rules that keep markets honest. This article explores when they were created, what they’re responsible for, and what their reports reveal about the health, and risk ,of global audit oversight.

1.  PCAOB – United States
   
   

• Established: 2002, under the Sarbanes-Oxley Act in the wake of the Enron and WorldCom scandals.
• Jurisdiction: Auditors of public companies and broker-dealers.
• Core Responsibilities:
  • Setting auditing and quality control standards.
  • Conducting regular inspections of audit firms.
  • Disciplinary enforcement through penalties, censures, or bans.
• 2022 Inspection Findings:
  • Inspected 180+ audit firms globally.
  • 40% of reviewed audits had one or more deficiencies.

Notable Quote: “Recurring deficiencies raise questions about firms’ systems of quality control.” – PCAOB 2022 Report

2.  FRC / ARGA – United Kingdom
   
   

• Established: FRC in 1990; ARGA (Audit, Reporting and Governance Authority) is its successor in development as of 2024.
• Jurisdiction: UK-based auditors, actuaries, accountants, and PIEs (Public Interest Entities).
• Core Responsibilities:
  • Setting audit and ethical standards.
  • Reviewing audit quality through inspections.
  • Issuing enforcement actions and penalties.
  • Publishing Corporate Governance and Stewardship Codes.
• 2023 Inspection Findings:
  • 29% of audits reviewed required significant improvement.

Notable Quote: “Audit firms must deliver consistent quality and reduce reliance on heroic individual effort.” – FRC AQR 2023

3.  IFIAR – International Forum of Independent Audit Regulators
   
   

1. Established: 2006
2. Jurisdiction: Global coordination among 56 national regulators.
3. Core Responsibilities:
   • Sharing inspection findings.
   • Promoting consistent audit standards.
   • Surveying global audit quality indicators.
4. 2023 Survey Highlights:
   • 58% of inspected audits of Public Interest Entities had at least one finding.
   • Most common issues: revenue recognition, internal controls, and group audits.

Insight: IFIAR provides a global barometer of audit health and regulator cooperation.

4.  CPAB – Canadian Public Accountability Board
   
   

• Established: 2003
• Jurisdiction: Auditors of publicly listed Canadian companies.
• Core Responsibilities:
  • Conducting inspections.
  • Promoting audit quality improvement.
  • Publishing public reports and thematic reviews.
• Annual Activity:
  • Inspects over 130 audit files each year.
  • Highlights recurring issues with audit execution and documentation.

Notable Quote: “Firms must shift from reactive to proactive audit quality management.” – CPAB 2022

5.  IRBA – Independent Regulatory Board for Auditors (South Africa)
   
   

• Established: 2006
• Jurisdiction: Registered auditors in South Africa.
• Core Responsibilities:
  • Oversight of auditing standards.
  • Disciplinary procedures.
  • Implementing mandatory audit firm rotation.

Recent Focus:

• Post-State Capture trust rebuilding.
• Addressing audit market concentration.
  
  

6.  NFRA – National Financial Reporting Authority (India)
   
   

• Established: 2018, post-IL&FS fraud.
• Jurisdiction: Listed companies and large unlisted public interest entities.
• Core Responsibilities:
  • Audit quality inspections.
  • Enforcement of auditor independence.
  • Issuing audit observations and sanctions.

2023 Outlook: “High concentration of audits among a handful of firms poses systemic risks.” – NFRA Strategic Report 2023

7.  H3C – Haut Conseil du Commissariat aux Comptes (France)
   
   

• Established: 2003
• Jurisdiction: Statutory auditors of public interest entities in France.
• Core Responsibilities:
  • Overseeing audit quality and ethical standards.
  • Coordinating with EU and global regulators.
  • Issuing recommendations on auditor independence.

Recent Focus: Strengthening ethical conduct, quality control reviews, and coordination with European audit reform initiatives.

8.  AFM – Dutch Authority for the Financial Markets (Netherlands)
   
   

• Established: 2002
• Jurisdiction: Regulates auditors, banks, investment firms, and listed companies.
• Core Responsibilities:
  • Supervising audit firms to improve quality.
  • Enforcing the EU Audit Regulation.

2023 Audit Review: Identified significant progress in internal controls at large firms, but warned that cultural change is still needed.

9.  BaFin & AOB – Germany
   
   

• Established: BaFin in 2002; Audit Oversight Body (AOB) integrated in 2021 post-Wirecard.
• Jurisdiction: Regulates auditors of public interest entities.
• Core Responsibilities:
  • Conducting quality control reviews.
  • Issuing disciplinary measures.
  • Overseeing audit firms performing audits under EU law.

Recent Reform: Increased direct government oversight after Wirecard scandal; audit transparency and enforcement authority strengthened.

10.  HKICPA / SFC – Hong Kong
    
    

• Established: HKICPA in 1973; regulatory reform in 2019 granted more authority to the Financial Reporting Council.
• Jurisdiction: Auditors of listed entities and PIEs in Hong Kong.
• Core Responsibilities:
  • Setting audit and assurance standards.
  • Reviewing and investigating audit failures.

2022 Enforcement Action: Several disciplinary actions against firms and CPAs for deficiencies in audit execution and independence.

11.  JICPA & FSA – Japan
    
    

• Established: JICPA since 1949; FSA audit inspection authority strengthened post-2008.
• Jurisdiction: Public company auditors in Japan.
• Core Responsibilities:
  • Joint oversight of audit quality.
  • Investigation and monitoring of listed company audits.

Current Priorities: Auditing corporate governance, IT risks, and sustainability disclosures.

12.  CSRC – China Securities Regulatory Commission
    
    

• Established: 1992
• Jurisdiction: Listed companies and audit firms serving China’s capital markets.
• Core Responsibilities:
  • Enforcing audit disclosures.
  • Regulating IPO-related financial reporting.

Cross-Border Focus: Recently reached audit inspection access agreements with U.S. PCAOB after years of opacity.

13.  ASIC – Australian Securities and Investments Commission
    
    

• Established: 1991 (as the Australian Securities Commission; became ASIC in 1998)
• Jurisdiction: Public company auditors and financial services firms in Australia.
• Core Responsibilities:
  • Conducting audit inspections.
  • Enforcing auditor independence and quality standards.
  • Publishing audit deficiency reports.

2022 Findings: ASIC reported that 32% of reviewed audits did not comply with standards, particularly in revenue, asset values, and going concern assessments.

14.  CVM – Comissão de Valores Mobiliários (Brazil)
    
    

• Established: 1976
• Jurisdiction: Auditors of public companies and capital market participants in Brazil.
• Core Responsibilities:
  • Supervising auditing and financial disclosure practices.
  • Enforcing compliance with securities regulations.

Recent Focus: Coordination with international bodies (e.g., IOSCO, IFIAR) and enhancing transparency in financial reporting post corporate scandals.

15.  FRCN – Financial Reporting Council of Nigeria
    
    

• Established: 2011 (replacing the Nigerian Accounting Standards Board)
• Jurisdiction: Public interest entities and their auditors in Nigeria.
• Core Responsibilities:
  • Monitoring and enforcing accounting and auditing standards.
  • Registering audit firms.
  • Investigating audit failures.

Key Initiative: Introduction of Audit Regulations 2020 to improve inspection rigour and align with global expectations.

The Bigger Picture

What do all these regulators tell us? That audit quality remains a global work-in-progress. 

From North America to Asia, audit regulators are ramping up scrutiny while struggling to address systemic issues ,talent shortages, inspection fatigue, and market concentration among a few large firms.

The role of the regulator has never been more vital ,or more challenged. And their findings consistently reinforce one key truth:

Audit firms cannot deliver quality through effort alone. Systems, support, and strategy must evolve in lockstep.

Final Thought 

Audit regulation is not about slowing firms down, it’s about keeping trust ahead of the curve. These bodies are the circuit-breakers of financial reporting. And while they vary by jurisdiction, their collective message is clear: audit needs reinforcement.

Because when trust cracks, it’s not just numbers that fall ,it’s systems, reputations, and economies.