In supervising internal audit work, the chief internal auditor of a securities firm may not do any of the following:
- Disclose, deliver, or make known the content of the financial examination report, in whole or in any part, to personnel not related to the performance of occupational duties, without FSC approval.
- Issue an untrue internal audit report in connection with internal audit work.
- Fail to discover a serious deficiency in financial or business operations due to the securities firm's deployment of an obviously insufficient number of, or incompetent, internal auditors.
- Fail to follow the FSC's instructions in conducting audit work or providing relevant information.