2. The contribution of external auditors
The 19th core principle stipulates that
«Banking supervisors must have a means of independent
validation of supervisory information either through on-site
examinations or use of external auditors». The reference made to
external auditors shows:
- the confidence of supervisors in external auditors
- the key role played by external auditors in the validation of
information provided by banks and/or collected by supervisors.
As for the supervisors, external auditors will have to
give an opinion on the bank's compliance with regulations generally and
specific ratios more precisely. This opinion shall cover all areas of banks
activity including the portfolio structure, its quality and the accuracy
of the classification and provisioning system for problem
loans.
21 MBA in Banking and Finance
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