A regulatory requirement is a mandate imposed by a government or an authority that must be followed by an organization or an individual. In a banking environment, audits are often required by regulators to ensure compliance with laws, standards, and policies related to security, privacy, and financial reporting. Audits help to identify and correct any gaps or weaknesses in the security posture and the internal controls of the organization.
References:
Official CompTIA Security+ Study Guide (SY0-701), page 507
Security+ (Plus) Certification | CompTIA IT Certifications 2