Regulatory Alerts2010-10-01
Communication of External Auditor with Those Charged with Governance in the Banking Corporation
The Supervisor of Banks issues this directive to mandate that external auditors of banking corporations communicate with governance bodies in accordance with American auditing standards. The regulation establishes specific requirements for reporting material findings, internal control weaknesses, and other audit matters to the board of directors or audit committee prior to financial statement approval. It further imposes obligations on banking corporations to respond to audit findings within 60 days and requires the submission of audit reports to the Supervisor of Banks, while granting the Supervisor authority to access all such communications.
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