##quisite skills such that they are able to leverage on their expertise and experience to make sound judgement and challenge the norm. this becomes even more important as companies grow in scale, venture into new lines of business and become more complex. further, the internal audit function should leverage on technology as a key enabler to improve audit quality and audit effectiveness. innovation in audit techniques should be promoted with greater usage of data analytic tools for better risk profiling and sampling. there ought to be close engagement between the internal audit function and external auditors on key risks and systemic issues, and in strengthening the overall assurance process. fourth, the role of the audit committee is integral in these efforts. the audit committee at the apex needs to exercise strong oversight through setting the “ tone from the top ” and embedding the right culture to ensure that the internal audit function is independent and objective in delivering its mandates. one message of ‘ tone from the top ’ is a reminder to all heads of internal audit that any findings that might indicate unethical or fraudulent activities or have reputational impact to petronas should be communicated to the bac immediately without waiting for the bac to meet. there should be ‘ zero tolerance ’ for any cases that involve abuses and corrupt practices. another important imperative is the committee ’ s responsibility to design governance structures that avoid placing the internal audit function in conflicted positions, and ensure that the function has sufficient standing and authority within the organisation. this will help to strengthen the ability of the internal audit function to independently audit and raise red flags where risks are observed. direct accessibility to the audit committee is key in this respect. concluding remarks as the world becomes more interconnected, an effective organisation will see its business managers and control functions partnering with the auditors, leveraging on their skills to build more effective operations, and strengthen business prospects. audit as a partner of change bis central bankers ’ speeches lies on the ability of the organisation to adapt and collaborate with the auditors towards securing the organisation ’ s long term success. bis central bankers ’ speeches

zeti akhtar aziz : islamic finance and global financial stability keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the seminar on islamic finance : during and after the global financial crisis – " islamic finance and global financial stability ", istanbul, 5 october 2009. * * * " the unfolding events during this global financial crisis have brought to the forefront the issues concerning the stability of financial systems and the robustness and resilience of the international financial architecture. at the heart of the crisis is the breakdown of the functioning of the financial intermediation process and the loss of confidence in the financial system. as the world continues to struggle with the consequent global economic recession and the continued fragile financial system, it has intensified the search for solutions. indeed, wide ranging reforms are now currently being discussed. the future financial landscape in the aftermath of this crisis is, therefore, likely to be significantly different from the present. in the search for the appropriate reforms, there is a general consensus that we need to return banking to its basic functions – to provide financial services that adds value to the real economy. this in fact represents the very essence of islamic finance. these are the very elements that are espoused in the shariah principles that underpin islamic finance and which explains its resilience during this international financial crisis. as the role and relevance of islamic finance in the global financial system gains significance, it will not only increase its potential to contribute to global financial stability but also towards strengthening global growth. " it is my honour to be invited to speak at this seminar on islamic finance : during and after the global financial crisis, jointly organised by the world bank, the islamic financial services board ( ifsb ), the islamic development bank ( idb ) and the institute of international finance ( iif ). this seminar takes place at a time in world history that is characterised by an unprecedented global financial instability, that has now precipitated a synchronised global economic recession. although signs of an impending recovery in the world economy have appeared in the horizon, the pervasively virulent and far reaching repercussions unleashed by the crisis has shaken the foundations of the global financial system. this damage has yet to be repaired and rebuilt. this has sparked the international call for the reform of the financial architecture to one that will best serve the world economy, to one that is more resilient to shocks and to one that would