Regulators “up the ante” on internal audit in banks

by Richard Crump

More from this author

29 Jun 2012

  • Comments
Ian Peters CIIA chief executive

GLOBAL BANKING regulators have published guidelines to strengthen the in-house audit of banks' internal control, risk management and governance systems and processers.

The rules, published by the Basel Committee on Banking Supervision, require internal auditors to report directly to the bank's board and audit committee rather than senior management. The new guidance should also make it harder for board members to ignore advice given by their internal auditors or claim they were not told about something.

By forcing banks to take their internal audit functions more seriously, the guidance is expected to help plug the gap in checks and balances exposed by revelations that Barclays had been rigging Libor interest rates – the rates at which banks lend to each other.

"[The] Basel Committee guidelines up the ante on internal audit in banks. It's an absolutely vital function in banks, but it hasn't always had the attention it needs," said Ian Peters [pictured], chief executive of the Chartered Institute of Internal Auditors.

"Ethics and culture in banks are set at the very top; this guidance helps internal auditors build better relationships with those at board level. It forces bank boards to take their internal audit functions seriously."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send
HM Revenue & Customs

Head Of Financial Control

HM Revenue & Customs, Telford, Full Time, Permanent/p>

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.