Developing the profession: internal audit in the FS sector

Our approach to developing the profession in the FS sector

The financial services sector has seen great changes to the way internal audit needs to operate and this presents both challenges and opportunities for practitioners. Nearly a third of our members work in the FS sector. We are helping them to meet the rising expectations of them and persuading boards and audit committees to use their internal audit resource in the most effective way.  

To do this, we have increased the emphasis we place on our work in the FS sector. Key to this is our Banking and Financial Services Sector Advisory Panel. The panel draws together practitioners from across the FS sector who advise us on our policy and influence work, technical guidance and events programme. Firms from across the sector all have representation on the panel, which is chaired by Gordon Craig, Director of Internal Audit at 3i. 

The mutuals sector is also represented on the panel, ensuring the needs of members in mutual organisations are met.

As well as supporting members with practical resources, we are working hard to communicate the value of internal audit to policy-makers, regulators and business leaders to influence how they harness the internal audit function.

How do members benefit?

Under our sector strategy, we provide: 

  1. Dedicated technical guidance on topical issues such as emerging risks in the sector. 
  2. Sector specific events, webinars and an annual conference.
  3. Increased representation and member input via our policy and influence work.  

Our work in the sector focuses on three areas. Read more about them here: 

Policy and influence  |  Technical guidance  |  Events programme 


Policy and influence

Our sector approach gives us an effective mechanism for harnessing insight. This directly informs our policy and influence programme. 

FCA Consultation: Senior Management & Certification Regime

Read our response to the 2017 consultation on Individual Accountability: Extending the Senior Managers & Certification Regime to all FCA firms

Financial Services Code

The code was reviewed and published in September 2017 with only modest changes.

Find more guidance in resources for financial services.


Technical guidance

The advisory panel works with the institute to develop our programme of technical guidance for the sector. Current resources include:

Operational resilience 

Operational resilience can be defined as the ability of an organisation to anticipate, prepare for, respond and adapt to incremental change and sudden disruptions in order to continue to deliver customer critical services.

Head of internal audit - senior management function

This guidance explains the key aspects of the  Senior Management Function 5 (SMF5) with the senior managers regime.

Interest risk management

An internal audit of IRR needs to consider whether the firm’s control framework is likely to be effective in managing the risks that are inherent in the firm’s risk profile. 

Outcome of processes

This guidance sets out a framework to enable internal auditors to self-assess the effectiveness of their internal audit function using criteria which the audit committee can endorse.

Risk assessments and prioritisation of internal audit work

This guidance will explain key points to consider when preparing and segmenting the audit universe to support internal audit’s risk assessment.

Bank’s capital and liquidity – auditing ICAAP and ILAAP

This guide will enable internal auditors to understand the key points to consider when.

Retrospective reviews

This guidance will explain how internal audit can assess the adequacy and effectiveness of management’s reviews.


Events programme for the sector

We host regular breakfast seminars on topical issues and run an annual conference specifically for the sector.

If you miss a seminar you can download the presentation here.


Questions?

Please contact us at iiapolicy@iia.org.uk