Federal Reserve regulators are taking a closer look at
the effectiveness of both internal and external risk management audits
at a number of banks, says board governor Mark W. Olson. Speaking at
the Bank Administration Institute’s April audit, compliance and
electronic security conference, Olson questioned—in view of some
banks’ recent “material financial consequences”—the reliability of
attestations their internal auditors have made about the adequacy of
measures in place to ensure the institutions’ safety and soundness.
The Fed also is reviewing the workpapers of the banks’ external
auditors to see whether they reflect adequate scrutiny of risk
management practices and what, if any, additional regulatory measures
may be necessary to improve audit quality and maintain public and
investor confidence in the institutions’ financial security. ( www.federalreserve.gov/boarddocs/speeches/2002/20020430/default.htm
)
Banking
