As regulations grow more complex, financial services firms face increasing scrutiny of their governance and controls. Robust internal audits are essential to test and evidence compliance across areas like conduct, governance and AML/CFT.
The FCA Handbook states that the purpose of an internal audit function is to provide independent assurance that a firm’s governance, risk management, and internal controls are operating effectively. The FCA expects internal audits to adopt a risk-based approach, prioritising risks that the firm deems crucial, whilst still ensuring that the full GRC/AML/CTF framework is tested at appropriate intervals.
An independent internal audit provides assurance that sy...