AI Summary of 64AJ. Internal Audit function
The trustees of a scheme or trust RAC are mandated to establish and maintain a robust internal audit function that complies with the relevant provisions. This internal audit must assess both the adequacy and effectiveness of the internal control system, as well as the governance framework, including any outsourced activities.
When the individual responsible for the audit presents findings or recommendations to the trustees, it is imperative that the trustees consider these insights. Moreover, the internal audit's scope should reflect the size and complexity of the organisation and its activities, ensuring a proportionate and effective approach to governance.
64AJ. Internal Audit function
(1) The trustees of a scheme or trust RAC shall establish and maintain an effective internal audit function which shall comply with this section.
(2) The internal audit function referred to in subsection (1) shall include an evaluation of the adequacy and effectiveness of the internal control system and other elements of systems of governance including, where relevant, outsourced activities.
(3) Where the person carrying out the internal audit key function provides a report or makes a recommendation to the trustees of a scheme or trust RAC, the trustees shall have regard to that report or recommendation.
(4) The scope and detail of the internal audit function shall be proportionate to -
(a) the size and internal organisation of the scheme or trust RAC, and
(b) the size, nature, scale and complexity of the activities of the scheme or the trust RAC.