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  • Internal Audit Charter

    • HC-6.5.24

      All Bahraini Islamic bank licensee's must have an internal audit charter that articulates the purpose, standing and authority of the internal audit function within the bank in a manner that promotes an effective internal audit function as described in Paragraph HC-6.5.1.

      Added: April 2018

    • HC-6.5.25

      The charter must be drawn up and reviewed annually by the head of internal audit and approved by the board of directors or audit committee. It must be available to all internal stakeholders and, in certain circumstances, such as listed entities, to external stakeholders.

      Added: April 2018

    • HC-6.5.26

      At a minimum, the internal audit charter must establish:

      (a) The internal audit function's standing within the bank, its authority, its responsibilities and its relations with other control functions in a manner that promotes the effectiveness of the function as described in Paragraphs HC-6.5.1 and HC-6.5.2;
      (b) The purpose and scope of the internal audit function;
      (c) The key features of the internal audit function described in Paragraphs HC-6.5.8 to HC-6.5.23;
      (d) The obligation of the internal auditors to communicate the results of their engagements and a description of how and to whom this must be done (reporting line);
      (e) The criteria for when and how the internal audit function may outsource some of its engagements to external experts;
      (f) The terms and conditions according to which the internal audit function can be called upon to provide consulting or advisory services or to carry out other special tasks;
      (g) The responsibility and accountability of the head of internal audit;
      (h) A requirement to comply with sound internal auditing standards; and
      (i) Procedures for the coordination of the internal audit function with the external auditor.
      Added: April 2018

    • HC-6.5.27

      The charter must empower the internal audit function, whenever relevant to the performance of its assignments and discharge of its duties, to initiate direct communication with any member of staff, to examine any activity or entity of the bank, and to have full and unconditional access to any records, files, data and physical properties of the bank. This includes access to management information systems and records and the minutes of board and sub-board committee meetings and all consultative and decision-making committees.

      Added: April 2018