53.

Earlier in the Report, the co-operation of

the Society of Accountants was gratefully acknow- ledged. The co-operation has been with the Society

on policy issues but also with individual auditors on particular cases. The standards being applied by the Society and by auditors are now generally high.

Bank audit is demanding work with the auditors facing the same changing scene which confronts the

bank supervisor. The work of the auditors and the supervisor and the public expectations from their

efforts should not be allowed to obscure where the

fundamental responsibility lies.

profitable running of the bank company lies squarely with its

management.

Anyone becoming

The safe and

or deposit-taking

directors and the

a director of a

The

financial institution must face up to his respon- sibilities and indeed must be of a calibre to accept

the responsibility in the first place.

management systems must also be such that the board

is able to direct affairs properly and with

knowledge of the institution's affairs. Some of the

banks in Hong Kong have learnt a hard lesson about

these basic needs in the last two years. It will be

an aim of the Commissioner

Commissioner in the coming year to ensure that other banks have absorbed these costly lessons in their internal management.

54.

In conclusion, the Commissioner wishes to

express his appreciation of the efforts of his staff

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