Auditors in short supply

Banks� efforts to tighten corporate governance are being hampered by a shortage of experienced internal auditors, according to Ernst & Young. The international accounting firm told the South China Morning Post internal auditors make up 1% of staff at mainland banks, compared with 2% to 5% globally. Banks have traditionally faltered when it comes to internal control and governance. But pressure from regulation and capital markets has forced banks to strive for more independence, using proper accounting standards. As more complex operations are engaged in – offering products such as derivatives and expanded treasury trading – internal audits become even more important.