Internal Audit - Policies and Procedures
How do I know if my internal audit policies and procedures are meeting federal and agency requirements?
Fannie Mae recently released several checklists as part of their Seller/Servicer Risk Self-Assessments, and Internal Audit was one of the checklists that was included. Internal audits are an important risk mitigation tool that uncover operational inefficiencies and potential areas of risk within a lender’s organization. For that reason, it is important for seller/servicers to know that their Internal Audit policies and procedures satisfy federal and agency requirements and are effective for identifying risk.
According to Fannie Mae, the following is a list of requirements for an internal audit self-assessment checklist.
Fannie Mae also included several recommended checklist items for seller/servicers reviewing or implementing new internal audit policies and procedures. In addition to publishing a checklist for developing Internal Audit Policies and Procedures, Fannie Mae also regularly conducts reviews to evaluate compliance with its guidelines and to assess operational risk. The Risk Self-Assessment also included common findings when internal audit policies and procedures are reviewed by Fannie Mae, as well as a list of required documentation for MORA reviews.