Large Bank Examination Workshop February 2026

Internal Audit Role • Responsible for verifying compliance with and evaluating the adequacy of any work performed pursuant to these procedures • Review any subsequent remediation resulting from a validation. • Ensure that outstanding issues have been remediated during the annual audit cycle.  As a component of business unit audits  As a component of audit of validation process

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Internal Audit Assessment • Verifying that selection of validation resources is appropriate  Identifying potential “selection bias” before selecting validator • Compare Engagement Letter (Scope) to Validation Report. • Compare current validation report with prior year validation report. • Inspect Organization’s model validation procedures and evaluate Validation Report for adequacy.

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