What is the primary role of an auditor in a bank?

What is the primary role of an auditor in a bank?

• A. To set financial goals for the bank
• B. To review and verify the accuracy of financial reports and compliance with regulations
• C. To manage the bank's investment portfolio
• D. To promote the bank's products and services

Answer: (B)

The primary role of an auditor in a bank is to review and verify the accuracy of financial reports and ensure compliance with regulations. This function is crucial for maintaining the integrity of financial information, which stakeholders rely on to make informed decisions. Auditors assess the effectiveness of internal controls, detect potential fraud or mismanagement, and ensure that the bank abides by laws and regulations that govern its operations. This helps in not only safeguarding assets but also maintaining the trust of customers, regulators, and the general public in the bank's financial practices. Auditors play a key role in risk management by identifying areas that may need improvement and providing recommendations for enhancing financial practices.

The primary role of an auditor in a bank is to review and verify the accuracy of financial reports and ensure compliance with regulations. This function is crucial for maintaining the integrity of financial information, which stakeholders rely on to make informed decisions. Auditors assess the effectiveness of internal controls, detect potential fraud or mismanagement, and ensure that the bank abides by laws and regulations that govern its operations. This helps in not only safeguarding assets but also maintaining the trust of customers, regulators, and the general public in the bank's financial practices. Auditors play a key role in risk management by identifying areas that may need improvement and providing recommendations for enhancing financial practices.