risks. in this context, i would like to highlight five key expectations from auditors to help ensure robust financial oversight and regulatory compliance. firstly, auditors must apply due rigor in their audit processes to mitigate any potential for divergence, under - provisioning, or non - compliance with statutory and regulatory requirements. further, a critical aspect of the auditor's role is the careful evaluation of internal financial controls over financial reporting. by maintaining meticulous standards and adherence to regulatory guidelines as well as auditing standards, auditors can minimise the need for supervisors to intervene. secondly, as regulatory frameworks and accounting standards increasingly shift towards principles - based approaches, the role of auditors'judgment becomes increasingly critical. in executing their responsibilities, auditors must exercise prudent judgment, prioritising substance over form. this implies that auditors must go beyond mere technical compliance. instead, they should discern the intent of the regulations and assess its application in practice so as to enhance the credibility of audit outcomes. thirdly, auditors can play a significant role in identifying and promptly reporting incipient vulnerabilities to both the bank management and the rbi. as you would be aware, a system of exception reporting has been implemented which requires reporting to rbi as soon as an issue of concern is observed. early detection of risks such as operational inefficiencies, liquidity concerns, or evolving irregular market trends enables proactive management strategies and mitigation measures. this not only safeguards the bank's interests but also reinforces systemic resilience and enhances overall financial stability. 3 / 4 bis - central bankers'speeches fourthly, auditors should deploy competent staff equipped with the necessary training, skills, and experience, particularly in critical areas such as information technology ( it ) and cyber security. in today's digital age, where cyber threats are increasingly sophisticated, auditors with specialized expertise are essential to assess and mitigate it risks effectively. by ensuring audit teams are well - versed in emerging technologies and security protocols, auditors can contribute significantly to safeguarding sensitive financial data and maintaining robust cybersecurity frameworks. finally, and most importantly, upholding the highest standards of integrity, auditors must ensure there are no conflicts of interest that could compromise the objectivity and independence of their audits. transparency and impartiality are of the utmost importance in fostering trust among stakeholders, including regulators, investors, and the public. auditors

must adhere strictly to professional ethics and guidelines to uphold their credibility and preserve the integrity of audit outcomes. conclusion in closing, i would like to mention that today the banking sector is at a decadal high in terms of all financial parameters that we monitor, and the sector is well poised to support the growth of indian economy. but we have a shared responsibility to ensure that the same is sustainable over the years. therefore, today's conference underscores the indispensable partnership between the auditors, cfos and financial sector regulators in safeguarding the integrity and stability of our financial institutions. together, we must uphold the highest standards of transparency, diligence, and professionalism to foster trust among stakeholders and ensure the continued resilience of our banking system. keeping in tune with the theme of today's conference, all of us - auditors, cfos, and supervisors - should continue fostering collaboration and communication so that we move towards a future where our banking sector not only meets but exceeds expectations, setting new standards of excellence in governance and integrity. with this i thank you for your participation at today's conference. we look forward to listening from you at the interactive sessions scheduled later in the day. 4 / 4 bis - central bankers'speeches