Organization
The internal audit organization is based on three fundamental principles:
- The strategy, requirement level and operating rules for the internal audit are set by the Management Board and approved by the Audit Committee of Dexia SA;
- The internal audit work is performed by a network of internal audit departments which carry out their work under the supervision of the Group General Auditor, who reports directly to the CEO, Chairman of the Management Board. The Group Auditor has direct access to the Audit Committee to which he/she regularly reports on the internal audit operations within the Group ;
- Each audit department in the subsidiaries is responsible for the performance of its mission to the Chairman of the Management Board of the entity in question and also reports functionally to the Group Auditor.
Methods
The global approach to risk, the common audit methodology, the carrying out of ‘horizontal’ missions and of ‘joint’ missions as well as the reporting and follow-up procedures established at the level of the parent company, all reviewed and completed in 2004, contribute to Dexia's effective internal control system.