Australia

Details

  • Service: Audit, Regulatory Audit, Advisory, Risk Consulting, Internal Audit, Risk & Control Services, Topics, Financial Services Regulation
  • Industry: Financial Services, Banking
  • Type: Regulatory update
  • Date: 17/07/2012

Internal Audit Function in Banks: Final document released by BIS 

The final document released by the Bank for International Settlements (BIS) makes limited changes to the proposed 'headline' principles of the previously released Consultative Document (December 2011). Nevertheless substantial re-writing of the supporting interpretation of these principles has occurred.

Impacts for Australian banks

  • Board Audit Committees should now formally review their charters and practices with a view to identifying and addressing gaps with supervisory expectations about the internal audit function.
  • There is a variety of potential APRA responses to this final document.
  • The principles focus on issues of ‘right skill sets’ may mean a significant step up for some internal audit functions.
  • The regulatory expectations of internal audit functions is likely to involve specific identification in APRA’s future Conglomerates Policy proposals. 
  • Internal Audit functions should consider performing a gap analysis in relation to these new requirements together with an action plan to remediate any gaps identified.
 

Financial services regulation

Financial services regulatory change
Regulation can involve change and complexity, however many organisations use regulatory to underpin business transformation and drive change.

Banking

KPMG’s banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.