Principle (8): The Unit's Relationship with Second Line of Defense Units and External Auditors
(A) Relationship with Second Line of Defense Units
73- Second line of defense units are subject to independent review by the audit unit. Each of these units has areas closely related to other units in general and to the audit unit specifically. However, they are all organizationally separate from each other. Given the comprehensive coverage provided by the oversight performed by the second line of defense, particularly by the Risk Management Unit and the Compliance Unit, the audit unit relies on valuable information provided by these units. Nevertheless, the reliability of this information is subject to assessment by the Head of the Audit Unit. (B) Relationship with External Auditors
74- External auditors appointed by the bank play a crucial role in the continuous improvement of the bank’s internal control systems related to their scope of work. Therefore, their work should be complementary to the internal audit unit. This should be coordinated through a defined mechanism and regular meetings (based on the approved internal audit policy) to enable both parties to stay continuously informed about significant concerns. The audit committee must ensure that this coordination is in place and effectively implemented.