OM-2.7 OM-2.7 Internal audit outsourcing
OM-2.7.1
Because of the critical importance of an effective internal audit function to a licensee's control framework, all proposals to outsource internal audit operations are to be considered material.
OM-2.7.2
The Agency will generally not permit licensees to outsource their internal audit function to the same firm that acts as their external auditors. However, the Agency may allow short-term outsourcing of internal audit operations to a licensee's external auditor, to meet unexpected urgent or short-term needs (for instance, on account of staff resignation or illness). Any such arrangement will normally be limited to a maximum of one year.
OM-2.7.3
Licensees who have existing outsourcing arrangements in place with their external auditors relating to the provision of internal audit services are required to find suitable alternatives when the existing arrangements terminate or come up for renewal.
OM-2.7.4
In all circumstances, Board and management of licensees must retain responsibility for ensuring that an adequate internal audit programme is implemented, and will be held accountable in this respect by the Agency.