Internal Audit Department (IAD) reports to the
Audit Committee (AC). Over the year, IAD conducted
an extensive program of risk-focused audits to
ascertain the adequacy and effectiveness of controls
and procedures across a wide spectrum of MAS’ operations.
The audits covered MAS’ core functions and
systems such as reserve and monetary policy management,
currency and corporate resource management, financial
sector supervision and development as well as the
IT infrastructure supporting these functions. For
the financial year, IAD assessed that the internal
controls of the audited areas were satisfactory.
MAS promptly implemented mitigating measures to
address audit concerns and enhance internal processes.
IAD also advised MAS management on best practices
and helped improve the effectiveness and efficiency
of risk management, internal controls and the governance
process. To provide advice on best practices and
assurance that adequate security and controls are
built into the solution, IAD participated in the
Steering Committees and Working Groups for the
implementation of the MEPS+ for SGD high-value
interbank payments and Singapore Government Securities
(SGS) settlement, and the front, middle and back
office system for MAS reserves and monetary operations.
During the year, IAD conducted a self-assessment
of its compliance with the International Standards
for the Professional Practice of Internal Auditing
(Standards) set by the Institute of Internal Auditors
(IIA). The review concluded that IAD was generally
compliant with the IIA Standards. An external quality
review of IAD will be conducted by an inter-statutory
board group in the coming year.