Internal auditors should be included in the communication process over the scope of work to be undertaken by the statutory auditors and supervisors of credit institutions, the ECIIA has told the European Banking Authority.
In a written response to the EBA’s consultation on how auditors and supervisors could exchange information better – EBA/CP/2015/17 – ECIIA says: “Communication between competent authorities and statutory auditors, as deemed prudent at any phase of the supervisory or audit processes, may be enhanced by the inclusion of the internal auditors of the credit institution.”
Since both statutory auditors and supervisors may rely on the work of internal audit, speaking with the function would help provide greater confidence about the activities of internal audit and help to focus work on those areas that most need it.
ECIIA also says better clarification is needed between the 2nd and 3rd lines of defence by the document.
It also recommends that the quality of internal audit functions at credit institutions be assessed against how well they comply with International Professional Practices Framework.
To read the full response, click here