Internal Audit in Financial Services has been saved
Internal Audit in Financial Services
Focus areas for thematic and targeted reviews in 2014
Developments in the macro-economic environment, systemic risks and inter-connectedness in the Financial Services Industry have made it imperative for the Internal Audit function to put a dynamic audit plan in place. It has also become important that high-risk areas are assessed and reviewed by specialists.
A relatively uncertain economic environment has put significant pressure on debt servicing capabilities of corporates. It has also created a need to critically assess the existing portfolio and take an account of the related risk management and accounting practices.
This situation, coupled with the uncertain economic environment and increased global regulatory scrutiny will require financial institutions to critically evaluate the quality of their regulatory submissions, model risk, capital related computations and conduct in the financial markets.
There is also likely to be an increased focus on conduct with customers and fairness in dealings. Based on the aforesaid developments and emerging trends, the focus areas for Internal Audit are highlighted alongside.