Communication. Its breakdown poses a massive threat for business strategy. Without conversations, messages go unheard, risks slip through the net, and morale is weakened. It was the breakdown of conversations between financial regulators and bank auditors that the Treasury Select Committee recently criticised in its verdict on the banking crisis. It called for improvement.rnThe art of conversation between the auditors and regulator was once more coherent than it has been of late. The 1980s saw the Bank of England, the organisation at the time responsible for banking supervision, hold annual meetings with an auditor and its banking client. The (old) regulator commissioned reports from the audit firms that required the auditor to report on aspects of internal control systems. But under the regulation of the Financial Services Authority, such discussions gradually declined.
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