MORNBFI Vol. 1 - Planters Development Bank

§§ 4185Q.9 - 4186Q.308.12.31directly access and communicate with anyofficer or employee, to examine anyactivity or entity of the institution, as wellas to access any records, files or datawhenever relevant to the exercise of itsassignment. The Audit Committee orsenior management should take allnecessary measures to provide theappropriate resources and staffing thatwould enable internal audit to achieve itsobjectives.Sec. 4186Q (2008 - 4164Q) Internal AuditFunction. Internal audit is an independent,objective assurance and consulting functionestablished to examine, evaluate andimprove the effectiveness of riskmanagement, internal control, andgovernance processes of an organization.§ 4186Q.1 (Reserved)§ 4186Q.2 (2008 - 4164Q.2) ScopeThe scope of internal audit shall include:a. Examination and evaluation of theadequacy and effectiveness of the internalcontrol systems;b. Review of the application andeffectiveness of risk management proceduresand risk assessment methodologies;c. Review of the management andfinancial information systems, including theelectronic information system andelectronic banking services;d. Assessment of the accuracy andreliability of the accounting system and ofthe resulting financial reports;e. Review of the systems andprocedures of safeguarding assets;f. Review of the system of assessingcapital in relation to the estimate oforganizational risk;g. Transaction testing and assessmentof specific internal control procedures; andh. Review of the compliance systemand the implementation of establishedpolicies and procedures.§ 4186Q.3 (2008 - 4164Q.3)Qualification standards of the internalauditor. The internal auditor of a UB or aKB must be a Certified Public Accountant(CPA) and must have at least five (5) yearsexperience in the regular audit (internalor external) of a UB or KB as auditor-incharge,senior auditor or audit manager.He must possess the knowledge, skills,and other competencies to examine allareas in which the institution operates.Professional competence as well ascontinuing training and education shall berequired to face up to the increasingcomplexity and diversity of the institution’soperations.The internal auditor of a Thrift Bank(TB), QB, trust entity or nationalCooperative Bank (Coop Bank) must be aCPA with at least five (5) years experiencein the regular audit (internal or external) ofa TB, QB, trust entity or national Coop Bankas auditor-in-charge, senior auditor or auditmanager or, in lieu thereof, at least three(3) years experience in the regular audit(internal or external) of a QB as auditor-incharge,senior auditor or audit manager.The internal auditor of an RB, NSSLA orlocal Coop Bank must be at least anaccounting graduate with two (2) yearsexperience in external audit or in the regularaudit of an Rural Bank (RB), NSSLA or localCoop Bank or, in lieu thereof, at least one(1) year experience in the regular audit(internal or external) of a UB, KB, TB, QB,trust entity or national Coop Bank asauditor-in-charge, senior auditor or auditmanager.A qualified internal auditor of a UB ora KB shall be qualified to audit TBs, QBs,trust entities, national Coop Banks, RBs,NSSLAs, local Coop Banks, subsidiariesand affiliates engaged in allied activities,and other FIs under BSP supervision.A qualified internal auditor of a TB ornational Coop Bank shall likewise bequalified to audit QBs, trust entities, RBs,Q Regulations Manual of Regulations for Non-Bank Financial InstitutionsPart I - Page 52