The Internal Audit department is an independent, objective assurance and consulting activity, helping to improve Charles Stanley’s operational functionality. It assists in accomplishing the firm’s objectives by aiming to improve the effectiveness of risk management, internal control and governance processes.

Internal Audit should be independent of the activities which it audits helping to ensure unbiased judgements and impartial advice to management.

The role of Internal Audit is to understand the key risks of Charles Stanley and to examine and evaluate the adequacy and effectiveness of the system of risk management and internal control as operated by Charles Stanley. Internal Audit will therefore have unrestricted access to all activities undertaken by Charles Stanley, in order to review, appraise and report on:

1. The adequacy and effectiveness of the systems of financial, operational and management control and their operation in practice in relation to business risks;



2. The extent of compliance with, relevance of and financial effect of policies, standards, plans and procedures established by the Board.



3. The extent to which assets and interests are acquired economically, used effectively, accounted for and safeguarded from losses of all kinds arising from waste, extravagance, inefficient administration, poor value for money, fraud or other cause and that adequate business continuity plans exist;



4. The suitability, accuracy, reliability and integrity of financial and other management information and the means used to identify measure, clarify and report such information;



5. The integrity of processes and systems, including those under development to ensure that controls offer adequate protection against error, fraud and loss of all kinds;



6. The follow up action taken to remedy weaknesses identified by Internal Audit review.

Internal Audit reports should be produced on the results of reviews to the Audit Committee; the Director of Internal Audit is accountable to the Audit Committee for:

1. Providing regular assessments of the adequacy and effectiveness of Charles Stanley Group’s systems of risk management and internal control based on the work of Internal Audit;



2. Reporting significant control issues and potential for improving risk management control processes;



3. Providing periodical information on the status and results of the annual audit plan and the sufficiency of Internal Audit resources

The Director of Internal Audit is responsible for:

1. Developing an annual audit plan based upon an assessment of the significant risks to which Charles Stanley is exposed;



2. Submitting the plan to the Audit Committee for review and agreement;



3. Implementing the agreed plan



4. Maintaining an audit staff with sufficient knowledge, skill and experience to carry out the plan;



5. Developing audit staff