Position Paper - Internal audit’s role in good governance

Internal control is an important cornerstone for banks’ long-term sound governance. It should be tailored to the business model, risks and organisational structure.

As risks are more and more complex, there are several functions involved in the implementation and the evaluation of an internal control system. However, it is important to stress the distinctive contribution of internal audit functions. Indeed, as the third line of defence, reporting to senior management and the board, internal audit gives an overall assurance on internal control effectiveness including an independent review of risk and control functions as well as insights on efficiency.