The external auditor plays a crucial role in overseeing the UK banking system by ensuring financial statements are accurate and trustworthy. While regulators focus on protecting financial stability and investor interests, auditors work to hold company management accountable to shareholders. There is concern that auditors may prioritize their commercial interests over shareholder interests, leading to potential conflicts. Efforts have been made to improve auditor independence, but ongoing review and enhancements are necessary. The auditor can assist regulators in supervising and enforcing regulations to manage risks effectively.