In one of the first regulatory responses to the Daiwa and Barings bank scandals, the Federal Reserve Board will instruct its examiners to order more internal and external audits.

William A. Ryback, the Fed's associate director for international supervision, said the central bank would tell examiners to order audits when they discover signs of trouble. Examiners normally add the deficiency to a list of items to be checked during the next review.

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