Notwithstanding these limitations, stress test are a vitally important supervisory tool. Communication with auditors The Bank is continuing to develop its relationship with external auditors and a Liaison Group has now been established to ensure effective communication between the Bank and the relevant accountancy bodies.
There was advanced consultation with the Bank in relation to the development of auditing guidance for auditors of banks and the same process will take place in relation to auditing guidance for other firms regulated by the Bank.