Danièle Nouy, Chair of the Supervisory Board of the Single Supervisory Mechanism delivered a speech today at the European Confederation of Institutes of Internal Auditing (ECIIA) conference in Paris. In her speech she highlighted several changes related to the introduction of the International Financial Reporting Standard 9 which will take effect in 2018 ventolin online canada.
Originating during the financial crisis of 2008, one of the goals of IFRS 9 is to report all financial instruments at fair value and to have all changes in fair value reported in net income (FASB) or profit and loss (IASB).
Ms Nouy highlighted the critical role that the internal audit function will play, being responsible for an independent review of the first two lines of defence and promoting best practices within financial institutions across the eurozone.
She pointed out the main challenges to internal audit teams as follows;
- the reinforcement of competencies and expertise of the overall internal audit staff. The skill mix needs to include accounting, expertise in compliance checking, treasury management, IT and strategic thinking;
- within a banking group, it is also important to ascertain whether there is a good balance between the organisation of internal control functions at group level and the way that internal control functions operate at entity level; these must be closely aligned. Naturally, according to the principle of proportionality, the structure and design of the internal control functions should be dependent on the size and complexity of the credit institutions.
A full transcript of her speech can be found at the following link;