Internal Audit


  1. (1) A firm must provide for an effective internal audit function.
  2. (2) The internal audit function must:
    1. (a) include an evaluation of the adequacy and effectiveness of the internal control system and other elements of the system of governance; and
    2. (b) be objective and independent from the operational functions.
  3. (3) A firm must ensure that any findings and recommendations of the internal audit function are reported to the firm’s governing body which must:
    1. (a) determine what actions are to be taken with respect to each of the internal audit findings and recommendations; and
    2. (b) ensure that those actions are carried out.

[Note: Art. 47 of the Solvency II Directive]