Guideline 40 - Independence of the internal audit function

1.84. The undertaking should ensure that the internal audit function does not perform any operational functions and is free from undue influence by any other functions including key functions.

1.85. When performing an audit and when evaluating and reporting the audit results, the undertaking should ensure that the internal audit function is not subject to influence from the AMSB that can impair its operational independence and impartiality.

Guideline 41 - Conflicts of interest within the internal audit function

1.86. The undertaking should take adequate measures in order to mitigate the risk of any conflict of interest.

1.87. The undertaking should therefore ensure that internally recruited auditors do not audit activities or functions they previously performed during the timeframe covered by the audit.

Guideline 42 - Internal audit policy

1.88. The undertaking should have an internal audit policy which covers at least the following areas:

a) the terms and conditions according to which the internal audit function can be called upon to give its opinion or assistance or to carry out other special tasks;

b) if relevant, internal rules setting out the procedures the person responsible for the internal audit function needs to follow before informing the supervisory authority;