Auditors Overlooked Bank Interest Rate Risks, Regulator Finds

US auditors fell short in responding to risks from soaring interest rates that toppled three regional banks over a year ago, according to the US accounting oversight board.

How auditors responded to the 2023 banking crisis covered a “spectrum,” said Jason Bullington, who leads the banking inspection group for the Public Company Accounting Oversight Board. Inspectors with the audit regulator, however, found that some auditors didn’t reconsider risk assessments or evaluations whether a company could remain a going concern as economic conditions shifted during the year, Bullington said while addressing the American Institute of CPAs’ annual banking conference Tuesday.

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