Magazine : Archives : 3rd Quarter 2013

Five Questions That Directors Should Ask About Internal Audit

The JPMorgan Chase & Co.’s London Whale scandal illustrated how a small player inside an institution could wreak serious havoc when proper internal controls are not in place. Essentially, one trader managed to cause a $6 billion loss without anyone inside the bank stopping it. Following the financial crisis and scandals at places such as JPMorgan, regulators have emphasized the role of internal audit, especially as it relates to risk management. With the spotlight on internal audit, Bank Director magazine sought help from two veteran audit committee members, Ingrid Stafford at the $17-billion asset Wintrust Financial Corp. near Chicago, and...