������2Otjl��mK�0?��S�pN�JO�m7L�%�94�4&^�/yb֔IݹO���� They also recommended that this be buttressed with rigorous scrutiny by the regulators of the adequacy of firms’ control frameworks.The key for internal audit as the third line of defence is that it is able to give independent and objective assurance to the board on the effectiveness of the risk management activities of the first two lines and support the audit committee and board in challenging the executive on risk. its procedures on Risk-based Project Audit Approach. The Code was updated in 2010 to make it clear that, in addition to being responsible for ensuring sound risk management and internal control systems, boards should 0000019578 00000 n
The said guidance note is given as Appendix II to the Technical Guide. 0000021770 00000 n
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This however is very different to internal audit being directly involved in the management of risk.The diagram below illustrates the sort of roles that internal audit can play in Enterprise-wide Risk Management (ERM) provided the necessary safeguards are in place. 0000020582 00000 n
The second line consists of the activities of specialist control functions, which monitor and facilitate effective risk management by the first line and ensure the flow of information on risk up and down the organisation. 0000004206 00000 n
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A sound internal audit provides recommendation for the improvement of business operations. 0000020094 00000 n
A trustworthy, global, guidance-setting body, The IIA provides internal audit professionals worldwide with authoritative guidance organized in the IPPF as mandatory guidance and recommended guidance. The 2. internal audit part ii – guidance document i. definitions 11 ii. %%EOF
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1.4Subsequently, in December 2002, RBI issued a guidance note on the risk-based internal audit function in the banks, detailing the steps required to be adopted therefor. 0000002708 00000 n
i. Guidance Note on Internal Audit of Power Industry Page 2 g. Internal auditors help the organisation in safeguarding assets and utilisation of available resources.
Hybrid roles below the HAR and deputy also need to be considered carefully as they are likely to make it even more problematic to distinguish second and third line activities in the day-to-day operations of the joint function. 0000000016 00000 n
internal control 21 v. internal audit independence 26 vi.