Mastering Risk Management

THE ROLE OF INTERNAL AUDIT

Policy and scope

Internal audit should operate within a clear policy statement, or charter, approved by the firm’s board and management, which outlines:

• ■its objectives and the scope of the internal audit function
• ■its status and position within the firm, including its relationship to the business lines and oversight functions
• ■its competences, tasks and responsibilities.

Its scope should be unrestricted and its responsibilities wide. According to the Chartered Institute of Internal Auditors (IIA),

‘Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, ...