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Practice Guide: Auditing Credit Risk Management
Recommended Guidance 

Practice Guide: Auditing Credit Risk ManagementCredit risk has always been considered a key risk for financial services organizations and, for a good number of organizations, maybe the most critical risk. This guidance provides internal auditors with a baseline skill set that allows them to test and evaluate the effectiveness of their organization’s credit risk management framework and processes.

This guidance will enable internal auditors to:

  • Understand the importance of credit risk in a financial services context.
  • Understand the regulatory environment and requirements related to credit risk.
  • Understand the risk governance and risk management processes surrounding credit risk.
  • Describe the nature and basis of measurement of the probability of default.
  • Design an audit engagement that assesses the appropriateness and effectiveness of the credit risk management framework and the adequacy of the institution’s credit profile.
  • Be able to apply IPPF and risk-based internal audit techniques to assess and audit credit risk in their organization.

Downloads and Links

Practice Guides are restricted to IIA members only.

Non-members may purchase this Practice Guide from the IIA Bookstore.


An updated edition of the International Professional Practices Framework (IPPF) guide, more commonly known as the Red Book, is now available. Visit the IIA Bookstore for more information.