|The Internal Audit Function|
As a bank director, you will receive and review reports produced by the bank’s internal audit function (hereafter referred to as ‘internal audit’). Therefore, it is important that you understand the rules, tasks and procedures followed by your bank’s internal auditor. It is doubly important if you are a member of your bank’s audit committee, because the committee directly oversees the work of the internal auditor. Consequently, not only will you read audit reports, but you also will review management reports to help you oversee internal audit work at your bank.
To help build your understanding of the internal audit’s job, the following provides a general outline for an audit program. It also presents information on management reports that you may encounter, and teaches you how to use them.