Internal audit Recent corporate governance events clearly demonstrate the importance of the internal audit function. While Sarbanes-Oxley does not focus on the role of the internal auditor, bank supervisors have long  2  BIS Review 25/2003  recognized the importance of an effective internal audit function to the control environment.
With respect to the quality of internal audit, the audit committee must pave the way for quality assurance. As we indicated in a recently amended interagency policy statement on the internal audit function, the committee should provide for the utmost independence, objectivity, and professionalism of the internal audit process. The audit committee sets the tone, and our role as supervisors is to reinforce it.