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Internal Control: Supplement on Internal Auditing

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Internal Control: Supplement on Internal AuditingEffective date May 2006Section information in the first part of this section isreprinted from a publication of the BankAdministration Institute (BAI), entitled State-ment of Principle and standards for InternalAuditing in the Banking Industry. The secondpart of this section reproduces appendixes A andB from the February 9, 2006, InteragencyAdvisory on the Unsafe and Unsound Use ofLimitation of Liability Provisions in ExternalAudit Engagement Letters. (See section this manual.)A STATEMENT OF PRINCIPLECONCERNING INTERNALAUDITING IN THE BANKINGINDUSTRYInternal Auditing is that management functionwhich independently evaluates the adequacy,effectiveness and efficiency of the systems ofcontrol within an organization and the quality ofongoing systems of control comprise the plan oforganization and all methods and measuresdesigned to: Provide reasonable assurance that assets aresafeguarded, information (financial and other)is timely and reliable.

Internal Control: Supplement on Internal Auditing ... STANDARDS OF INTERNAL AUDITING IN THE BANKING INDUSTRY Organization Standards 1. The organization shall have an internal audit function responsible for evaluating the ad- ... Internal Control: Supplement on Internal Auditing

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