•  Are the resources available to our internal audit function adequate given the nature, complexity, and risk of our institutions' activities? •  Are weaknesses being fully identified and reported promptly to us? External auditors can also help federal regulators by encouraging financial institutions to frequently reassess and refine their risk-management practices.
A risk-management system should continually monitor financial risks in a changing business climate, such as the outlook for credit risk, market risk, liquidity risk, and operational risk. Of course, the potential benefits of external audits can be realized only when audits are performed according to high professional standards. This is not a time when the accounting profession can be complacent.