Cunningham Lindsey UK

AuditsRegulationUnder Systems and Controls Sourcebook (3.1.1), theFSA requires that firms take reasonable care toestablish and maintain such systems and controls asare appropriate to its business.Section 3.2.16 states that it may be appropriate for firmsto delegate the monitoring of its systems and controls toan internal audit function.Cunningham Lindsey UK ResponseWe have a Product Assurance team which reports to theBoard with a remit to monitor and audit our systems andcontrols.The team, which comprises experienced andprofessionally qualified staff focuses on:• The design of the product and the documentationof processes• The delivery of the product by the operational teams,including file audits• The management of the operational teams, howeffectively the structure and the use of managementinformation supports the delivery of the product to theclient and their customersKey RequirementsUnder 3.2.16, the internal audit function should:• Have clear responsibilities and reporting lines to anaudit committee or appropriate senior manager• Be adequately resourced and staffed by competentindividuals• Be independent of the day-to-day activities ofthe firm• Have appropriate access to the firm’s records• Members of the Product Assurance team havespecific roles/responsibilities and report directly to theBoard and Chief Executive Officer via a full BoardDirector – Harry Roberts• The team is structured to examine the products andservices the firm provides to its clients and theircustomers• The team operates entirely independently of theoperational teams undertaking the day-to-day claimshandling activities of the firm• The team has full access to all company data26 Cunningham Lindsey UK Audits 27