Week 6 - Three Lines of Defence Flashcards
1
Q
What is the three lines of defence regarding?
A
Controls / things going wrong
2
Q
Where is the first line of defence?
A
Within the department or division of that company - management are responsible for the area they look after
3
Q
What is the first line of defence?
A
- management controls
- internal control measures
4
Q
What is the second line of defence?
A
- financial control
- security
- risk management
- quality
- inspection
- compliance
5
Q
What is the third line of defence?
A
Internal audit - independent function that are within the company
6
Q
What do the internal audit do?
A
Ensure the controls are working and that risks are being managed within the company
7
Q
Who does the first line of defence report to?
A
Senior management
8
Q
Who does the second line of defence report to?
A
Senior management
9
Q
Who does the third line of defence report to?
A
Senior management and Governing body/board/audit committee
