PRA has updated its webpage on PRA’s supervision of credit unions by clarifying its expectations for credit unions using third parties for internal audit services. PRA takes the view that, where appropriate, the use of third parties for internal audit services can be a good thing and can provide supervisory committees and credit unions with additional challenge or assurance with respect to how they run their institutions. However, PRA considers that, if external audit and internal audit services are provided by the same third party company, the internal audit function cannot genuinely retain its independence. Credit unions with such arrangements in place are expected to take steps, at an appropriate point such as a break in the existing contract, to ensure that any services are provided by separate parties. PRA intends to issue a supervisory statement on this matter in early 2016. (Source: PRA Updates on Credit Unions)
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PRA updates on credit unions’ use of third parties
United Kingdom December 23 2015
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