Internal Control and Internal Audit

March 5, 2015BSP CIRCULAR NO. 871-15SUBJECT : Internal Control and Internal AuditThe Monetary Board in its Resolution No. 230 dated 13 February 2015, approved the following amendments to Sections X185-X185.12 and X186-X186.4 of the Manual of Regulations for Banks (MORB) on the Internal Control System and Internal Audit Function in banks, respectively. Policy Statement. It is the thrust of the Bangko Sentral ng Pilipinas to promote strong control environments in its supervised financial institutions to sustain their safe and sound operations. In this regard, the BSP is aligning its existing regulations, to the greatest extent possible, with international standards and best practices in internal control and internal audit as embodied in related documents issued by the Basel Committee on Banking Supervision (BCBS) and the Committee on Sponsoring Organizations of Treadway Commission (COSO).SECTION 1. Internal Control Framework. — Section X185 and Subsections X185.1-X185.5 the MORB shall now read as follows:(a) Section X185. Internal control framework. Internal control is a process designed and effected by the board of directors, senior management, and all levels of personnel to...