Durosinmi states role of auditors in banking sector stability

In order to preventanother crisis in thefinancial sector, The Group Managing Director/Chief Executive Officer, Skye Bank, Mr Kehinde Durosinmi-Etti, has stressed the need for aligning internal audit functions in concert with stakeholders' expectations.This, he said, is by assuring the Board and the Audit Committee on the effectiveness of risk management practices and adequacy of financial and operational controls.Durosinmi-Etti expressed this view in a paper titled 'Preventing Another Banking Crisis: What Role for the Internal Auditor' presented at the monthly meeting of the Committee of Chief Inspectors of Banks in Nigeria (CCIBN) hosted by the bank in Lagos last week.He canvassed for the independence of the internal audit function in banks by ensuring that the head of the department reports to the chairman with a dotted reporting line to the chief executive officer.According to him, this would embolden the internal auditors to carry out their jobs without fear of persecution and free them from becoming an appendage of the chief executive.The bank chief maintained that faithful implementation of this reporting line would help ensure strict independence of the auditors in the discharge of their responsibilities, advising the audit committee of banks, comprising mainly non executive directors to be responsible for reviewing and approving the internal audit work plans, as well as for ensuring that appropriate actions are taken by management on issues raised.The Skye Bank boss further made case for the auditors to provide independent and objective feedback on areas of interest, as well as point out company-wide potential risks, providing insights on cost saving opportunities and identify key risks.'Owing to the significance of evolving issues in risk management, technology, operations etc, practitioners should improve on the platforms for shared experiences among banks. This will enable faster diffusion of latest developments and thus provide internal auditors with relevant tools to manage such emerging risks,' he said.
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