Global Practice Guide: Auditing Capital Adequacy and Stress Testing for Banks, 3rd Edition

The Institute of Internal Auditors

• Publisher: The Institute of Internal Auditors
• Year: 2025
• Topic: Business
• eBook ISBN:
  9781634542326
• Subtopic: Financial Accounting
• Index: Business

Stability within the banking sector is crucial to preserving the trust that underpins a well-functioning economy, including during periods of global financial volatility.

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This Global Guidance, aligned with the Global Internal Audit StandardsTM, explains capital adequacy and how to plan and perform internal audit engagements to provide assurance on the capital planning and management process as well as associated oversight activities.

Table of contents

• Executive Summary
• Introduction
• The Capital Planning Process
• Overview of Regulatory Capital
• Planning Engagements to Assess Capital Adequacy
• Appendix A. Relevant IIA Standards and Guidance
• Appendix B. Glossary
• Appendix C. Total Loss-absorbing Capacity (TLAC) Standard for Global Systemically Important Banks
• Appendix D. References and Additional Reading