The consultative document provides proposed guidance for assessing the effectiveness of the internal audit function in banks and replaces the 2001 document entitled "Internal Audit in Banks and the Supervisor’s Relationship with Auditors". The proposed guidance is built around a set of principles that seek to promote a strong internal audit function within banks. An overview of these principles is contained in the first part of the consultative document. The consultative document also contains: (i) supervisory expectations relevant to the internal audit function; (ii) the relationship of the supervisory authority with the internal audit function; and (iii) a supervisory assessment of the internal audit function.