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Summary:	By AI The Saudi Central Bank issued the principles of internal auditing for financing and real estate refinancing companies, based on the Financing Companies Control Law. The principles include definitions and general provisions, the duties of the Council, the Audit Committee, and executive management, emphasizing the importance of independence and objectivity in internal auditing. The text addresses the responsibilities of business units in risk management and the role of internal audit management in...

InternalAuditPrinciplesforFinance

CompaniesandRealEstateRefinance

Companies

(September2024/Rabi’l1446H)

TheSaudiCentralBank(SAMA)issuedthesePrinciplesbasedonthepowersvestedinSAMA

undertheFinanceCompaniesControlLawissuedbyRoyalDecreeNo.(M/51)dated13/08/1433H

anditsImplementingRegulationsissuedbytheDecisionofSAMAGovemorNo.(2/MFC)dated

04/14/1434H.

Importantnote:

FortheupdatedandamendedPrinciples,SAMAadvisesyoutoalwaysrefertotheversion

publishedonitswebsite:www.sama.gov.sa

SaudiCentralBank

TableofContents

Section

Princip!

e1:DutiesandResponsibilitiesoftheBoardtowardInternal

Princip!

e2:DutiesandResponsibilitiesoftheAuditCommitteetoward

Princip!

toward

e3:DutiesandResponsibilitiesoftheExecutiveManagement

InternalAuditFunction

Princi

Units

Princip!

e4:KeyDepartmentFeatures

e5:DutiesandResponsibilitiesoftheDepartmentDirector

e6:DutiesandResponsibilitiesoftheDepartment

e7:InternalAuditPolicy

e8:InternalAuditPlan

e9:DepartmentReports

e10:DepartmentPoliciesandWorkProcedures

e11:ExternalEvaluationoftheDepartment

e12:DocumentationofDocumentsandReports

e13:DepartmentRelationshipwithFirstandSecondLine

OREREmoRS©ov@

SectionOne

1.Definitions

ENDefinition

SAMATheSaudiCentralBank.

PrinciplesTheInternalAuditPrinciplesforFinanceCompanies

andRealEstateRefinanceCompanies.

LawTheFinanceCompaniesControlLaw.

Regulations|TheImplementingRegulationoftheFinanceCompanies

ControlLaw.

CompanyThefinancecompaniesandtherealestaterefinance

companieslicensedbySAMA.

BoardTheCompany’sboardofdirectors.

ExecutiveIndividualswhoruntheCompany’sdailybusiness,

Management|proposeandimplementstrategicdecisions,andare

consideredseniormanagement.

Theinternalauditdepartmentwhosedirectorand

Department|employeesassumeinternalauditdutiesand

responsibilitiesintheCompany.

Department|Thepersoninchargeoftheinternalauditdepartmentin

DirectortheCompany.

InternalTheemployeesintheDepartmentwhoareprimarilyin

Auditorschargeofinternalauditing.

InternalAudit|Anindependentfunctionthatprovidesassuranceand

Functionobjectiveconsultingonthequality,adequacyand

effectivenessoftheCompany’sinternalcontrolsystem.

Thisisachievedbyfollowingasystematicand

disciplinedapproachtoreviewtheaccounting,financial

andoperationalprocesses,amongothers,andevaluate

andimprovetheeffectivenessofgovernance,risk

managementandcontrolprocesses.

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Internal Audit Principles for Finance Companies and Real Estate Refinance Companies