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This release accompanies the publication, by the Chartered Institute of Internal Auditors, of draft guidance for consultation, on Effective Internal Audit in the Financial Services Sector. For more information about the Chartered Institute of Internal Auditors and about the Committee that drafted the guidance please see the Institute’s website.
Both the Bank and the FSA strongly believe that an effective internal audit function is an essential part of a firm’s corporate governance structure and representatives from both authorities have been observers on the Committee that drafted this guidance
Andrew Bailey, Executive Director of the Bank of England and Managing Director of the FSA’s Prudential Business Unit, said: “The expectations of internal audit functions within financial services firms have hitherto been set too low. The regulatory authorities expect firms to have robust internal audit functions capable of providing genuine challenge to management and driving improved governance, risk management and internal controls. I hope that this guidance will help internal audit functions position themselves to achieve that.”