Today, the bank’s audit committee remains arguably the most important committee for any depository institution. The audit committee selects and oversees the external auditor; supervises the internal auditor; oversees whistleblower investigations; reviews audit findings; ensures the effectiveness of the institution’s internal controls; sometimes conducts loan reviews; and manages the organization’s risks, particularly if there is no separate risk committee. If the audit committee does its job right, it can head off problems such as inaccurate audits that can lead to shareholder lawsuits and regulatory consequences. It can investigate and stop fraud that will threaten an institution’s very survival (think Enron)....