The attempts to better estimate, provide for them and to present an assessment of the adequacy of buffers, therefore, remains a continuing one. Role of audit Let me now turn to the role of audit in ensuring the efficacy of risk management and capital adequacy systems in banks.
Put in an extremely narrow perspective, auditors ensure that the audited entity is adhering to the prevailing accounting standards pretty much like supervisors are tasked with ensuring that banks are following the prescribed regulatory framework. But expectations from supervisors and auditors – from society, from the financial system and from ourselves – goes beyond this narrow perspective.