The Basel Committee has published a new paper “The Internal Audit Function in Banks”. The document replaces the 2001 document “Internal audit in banks and the supervisor’s relationship with auditors” and takes into account developments in supervisory practices and in banking organisations and incorporates lessons drawn from the recent financial crisis. The document is based on 20 principles, which are organised in three sections:
- Supervisory expectations relevant to the internal audit function;
- The relationship of the supervisory authority with the internal audit function; and
- Supervisory assessment of the internal audit function.
The principles set out in this document should be applied in accordance with the national legislation and corporate governance structures applicable in each country.