IIA releases new practice guide on liquidity risk

03 January 2018

Recognizing that financial services auditors face unique challenges that require tailored guidance, the IIA has released Auditing Liquidity Risk, An Overview, the first IPPF practice guide specifically for financial auditors.

This practice guide takes the reader through an overview of Auditing Liquidity Risk covering the following topics at a high level:

• History of the regulatory environment surrounding liquidity risk management.
• Importance of liquidity risk management to a financial institution.
• The fundamental principle for the management and supervision of liquidity risk
• Governance of liquidity risk management:
• Liquidity risk appetite and risk tolerance/
• Planning for internal audit engagements regarding liquidity risk management.
• Measurement and management of liquidity risk.
• Public disclosure requirements.
• Role of supervisors.

Full press release

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