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- Internal audit to report directly to the Audit Committee
- Remuneration of Internal Auditors / Internal Audit head to be fixed by the Audit Committee
- Internal audit budget to have a discretionary component to be used for special investigations / fraud reviews
- Internal audit coverage to include IT systems and applications being used for storing and processing critical business and financial information
- Clear mission, role and scope for the Internal Audit to be defined
- Focus on Risk based auditing – ie: focus on those areas where the risk of error or fraud is highest
- Internal Audit team members to be trained adequately in all relevant skills (financial analysis, IT auditing, tools, etc)
- Internal audit recommendations to focus on improving processes and systems to address root causes of issues identified
- Internal audit reports to also cover implementation of planned initiatives from earlier periods and to highlight any instances of non-implementation
- Annual performance review of Internal Audit would have to be conducted by Audit Committee.