<h1>Statutory audit responsibilities expand under principle based regulation; auditors must validate judgements, models and disclosures.</h1> Statutory auditors must ensure that financial statements of banks and AIFIs present a true and fair view and support prudential measures; under principle based regulation they must evaluate management judgement in investment classification and ECL provisioning, validate models and methodologies, and apply heightened scepticism. Auditors should insist on meaningful disclosures of assumptions, governance and methods, and expand their remit to address going concern, climate risk, technology and vendor related operational risks, requiring specialised skills and closer engagement with regulators.