1. Introduction
| No: 43037826 | Date(g): 1/12/2021 | Date(h): 26/4/1443 | Status: In-Force |
Translated Document
Effective from 2022-01-01 - Dec 31 2021
To view other versions open the versions tab on the right
| 1-1 | The Central Bank has issued these principles based on its supervisory and regulatory powers as outlined in the following regulations: | ||
| A: | The Saudi Central Bank Law, issued by Royal Decree No. (M/36) dated 11/04/1442 AH. | ||
| B: | The Banks Control Law, issued by Royal Decree No. (M/5) dated 22/02/1386 AH. | ||
| 1-2 | These principles are structured and contextualized into three chapters: Chapter One: Clarifies the terms used and general provisions. Chapter Two: Provides an overview of the roles, responsibilities, and duties of the Board of Directors, the Audit Committee, and Executive Management in relation to internal audit, as stipulated by relevant regulations and guidelines, including the requirements for their effective implementation, Chapter Three: Includes detailed and comprehensive requirements concerning the activities, roles, and responsibilities of the internal audit function. It highlights its position as the third line of defense, complementing the first and second lines of defense. This chapter also underscores the role of internal audit as a tool for oversight and supervision within the bank, rather than a replacement for the bank's management, ensuring alignment with regulatory requirements, guidelines, and best practices, while considering the unique nature and application style of banking institutions. | ||