INTERNAL AUDIT GOVERNANCE PROCEDURES

The Internal Audit Division of The Bank of Jamaica provides independent, objective assurance and consulting services designed to add value and improve the organization's operations. It helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

SCOPE OF WORK

The scope of work of the internal auditing Division is to determine whether the organization's network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning effectively and ensures that quality and continuous improvements are fostered in the organization's control process.

METHODOLOGY

In the course of each audit, the audit team discusses its findings, conclusions and suggested improvements with the divisional management concerned. Draft audit reports are subsequently sent to management for confirmation. Final reports, incorporating management's response and agreed actions, are issued to the Heads of Division concerned.

The Governor, the Audit Sub-Committee of the Board and Heads of Division are informed of any instances where agreed actions or other appropriate improvements have not been implemented or where corrective action taken by management is considered inappropriate or insufficient.

REPORTING RELATIONSHIP

To provide for independence for the Internal Audit Department, The Chief Audit Executive and personnel, in the discharge of their duties, report functionally and administratively to the Chairman of the Board/Governor and functionally to the Audit Sub-Committee of the Board which is chaired by a non-executive member of the Board.

The Chief Audit Executive:

• Provides monthly to the Governor an assessment on the adequacy and effectiveness of the organization's processes for controlling its activities and managing its risks and reporting significant issues.
• Provides quarterly to the Audit Committee reports summarizing the results of audit activities and identifying significant audit findings and recommendations. Meets with the Audit Committee to discuss these reports together with the departments work plan activities.

Reports are made to the Board by the Chairman of the Audit Committee on matters discussed and positions reached at the meetings.

STANDARDS OF AUDIT PRACTICE

The Internal Audit Division is guided by the International Standards for the Professional Practice of Internal Auditing, the Code of Ethics of The Institute of Internal Auditors as well as other professional auditing standards as applicable.