Overview

The purpose of Internal Audit is to contribute to the achievement of CBUAE's objectives by providing independent, objective assurance and advisory services that assess the effectiveness of governance, risk management, and internal controls.

The function is dedicated to improve, enhance and safeguard the organisation's value, and to provide valuable advice, insights and foresight recommendations to the management.

The division’s vision is to become a trusted advisor in key business initiatives, and to be recognised as a driving force behind CBUAE’s culture.

In addition, CBUAE has established a robust internal control system based on the internationally recognised Three Lines Model, which strengthens governance, improves collaboration, and ensures sound internal controls.

Independency and Authority

Internal Audit remains free from all conditions that threaten the ability of Internal Auditors to carry out their responsibilities in an unbiased manner, including matters of audit selection, scope, procedures, frequency, timing, and report content. If independence or objectivity is impaired in fact or appearance, the details of impairment must be disclosed to appropriate parties.

Internal Audit reports functionally to the Board Audit Committee and administratively (i.e., day-to-day operations) to the CBUAE Governor. Internal Audit meets with the Board Audit Committee at least four (4) times annually to provide periodic status updates and reports on Internal Audit activities.

The function derives its authority from the Internal Audit Charter that is approved by the Board Audit Committee. The Committee authorises Internal Audit to have full, free, and unrestricted access to all functions, records, property, and personnel pertinent to carrying out any engagement. The resources available to the Internal Audit Division will be assessed annually and approved by the Board Audit Committee.

The Board Audit Committee approves, appoints, evaluates performance, remuneration, job description, qualifications, and succession plan of the Chief Internal Audit Officer.

In addition, the Board Audit Committee approves the appointment of the Chief Internal Audit Officer in investigation committees or other tasks as an advisory body, taking into account independency requirements.

Statutory Audit Mechanism

The appointment of the Statutory Auditor to provide audit services to CBUAE are on an annual basis, the total duration of the appointment not exceeding six (6) consecutive years.

In cases where the auditor is reappointed for another financial year, CBUAE conducts an evaluation of the quality indicators of the audit services performed by the auditor during the previous fiscal year. This practice is aligned with the laws and regulations that is applicable in the UAE.