• Service: Advisory, Risk Consulting, Internal Audit, Risk & Control Services, Topics, Financial Services Regulation
  • Industry: Financial Services, Banking
  • Type: Business and industry issue, Regulatory update
  • Date: 28/03/2014

Internal Audit in Banks: BIS, FRB and IIA (UK) comparison 

Since the release of the Bank for International Settlements’ (BIS) paper on the internal audit function in banks in June 2012, there have been two papers released by the American Federal Reserve Bank (FRB) and the UK’s Institute of Internal Auditors UK (IIA) on the same topic.
  • FRB’s ‘Supplement Policy Statement on the Internal Audit Function and its Outsourcing’ in January 2013
  • IIA’s ‘Recommendations from the Committee on Internal Audit Guidance for Financial Services’ in July 2013

These international standards, and APRA’s latest prudential standards, CPS 220: Risk Management, all point to a consistent trend of a heightening of expectations by regulators globally with regard to the role of internal audit within financial institutions.

This article provides a detailed analysis of the significant differences between the BIS paper and the FRB and IIA papers, and APRA’s CPS 220: Risk Management prudential standard.


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