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Article: Federal Banking Agencies Issue Comprehensive Internal Audit Policy Statement.
- Article from:
- Mondaq Business Briefing
- Article date:
- March 31, 2003
CopyrightCOPYRIGHT 2003 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The four federal banking agencies issued an Interagency Policy Statement on the Internal Audit Function and its Outsourcing (the "Policy Statement"). The Policy Statement first highlights that the board of directors and senior management of a bank are responsible for ensuring effective internal controls (e.g., assuring safeguarding of assets, reliable financial reporting and legal compliance) and this responsibility cannot be delegated. The Policy Statement further notes that this function is often outsourced and that the banking agencies have safety and soundness concerns derived from their examination of existing outsourcing arrangements.
Nature of the Internal ...