Regulatory Alerts2012-06-27
Internal Audit Function
The Supervisor of Banks issued this directive to mandate that all banking corporations maintain a permanent, independent, and adequately resourced internal audit function. The regulation requires the function to operate with full objectivity and impartiality, ensuring it is subordinate to the board of directors and free from conflicts of interest. It further stipulates specific duties, including the review of risk management and internal controls, the establishment of a formal charter, and strict governance over staffing, competence, and outsourcing arrangements.
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