HC-8.1.7
(a) Report directly to the Audit Committee and administratively to the CEO;
(b) Demonstrate appropriate leadership and have the necessary personal characteristics and professional skills to fulfil his responsibility for maintaining the function’s independence and objectivity;
(c) Inform senior management of all significant findings so that timely corrective actions can be taken, and subsequently, he must follow up with senior management on the outcome of those corrective measures;
(d) Report quarterly to the Audit Committee the status of pending findings;
(e) Arrange appropriate ongoing training for the internal audit staff to meet the growing technical complexity of the licensee ’s activities and the increasing diversity of tasks that need to be undertaken as a result of the introduction of new products and processes and other developments in the financial sector;
(f) Establish an annual internal audit plan approved by the audit committee. The plan must be based on a robust risk assessment, including direct or indirect input from the board, audit committee and senior management;
(g) Develop and maintain appropriate tools to assess the quality of the IAF; and
(h) Define, in a group structure, the group’s internal audit strategy, determine the organisation of the internal audit function both at the parent ’s and the subsidiary’s level (in consultation with these entities’ respective audit committees and in accordance with local laws) and formulate the internal audit principles, the audit methodology and quality assurance measures. He must also determine the audit scope for every internal audit exercise, by the parent’s internal audit function, for every subsidiary on an annual basis in compliance with local regulations and incorporate local knowledge and experience.
Added: July 2023