Each firm should review its own internal practices to ensure that audits are of the best quality, consistent with sound practices and high standards of ethics and independence. The peer -review process should be viewed as an opportunity to improve quality rather than a somewhat routine compliance obligation.
These relate to the regulatory treatment of ABS, transparency and standardisation requirements and the treatment of ABS by credit rating agencies. The proposals should be seen as complementary to the suggestions made elsewhere, including the recent joint discussion paper from the ECB and the Bank of England.