Outsourcing of Internal Audit Activities
HC-6.5.66
Regardless of whether internal audit activities are outsourced, the board of directors remains ultimately responsible for the internal audit function.
Added: April 2018HC-6.5.67
The head of internal audit/coordinator must maintain adequate oversight and ensure that any outsourcing providers comply with the principles of the bank's internal audit charter.
Added: April 2018HC-6.5.68
To preserve independence, the head of internal audit/coordinator must ensure that the outsourcing provider has not been previously engaged in a consulting engagement in the same area within the bank unless a one year "cooling-off" period has elapsed. Subsequently, those experts who participated in an internal audit engagement must not provide consulting services to a function of the bank they have audited within the previous 12 months. Additionally, banks must not outsource internal audit activities to their own external audit firm (see OM-3).
Added: April 2018
