HOW DOES INTERNAL AUDIT ASSIST IN
CONTROLLING SALOMON'S RISKS?
Internal Audit seeks to identify and control risk in a
variety of ways. Through audits we examine and test the
existence and efficiency of control systems. We assess
whether controls are in place to minimize exposure to
fraud, negligence or error, and if so, whether those con-
trols work as intended. We also monitor and evaluate the
complex network of technologies and systems in use at
Salomon. We continuously evaluate risk in the design
of the infrastructure and the standards employed, and
perform pre-implementation reviews of new systems and
applications. Through forensic examinations we analyze
instances of unanticipated loss at Salomon and other
firms, investigating what processes were affected, and
how they were affected. We seek to ensure that we learn
from experience, whether it is our experience or that of
others. Finally, we provide advisory services to Salomon's
production and support units. The primary focus of
our consulting assistance is the proactive design and
development of controls, but we also analyze control
considerations in the broader context of Salomon's
business planning and other management needs.
HOW IS INTERNAL AUDIT ORGANIZED?
As part of Salomon's management controls framework,
Internal Audit reports to the Firm's General Counsel,
along with the Compliance, Credit Review and Legal
Departments. The Managing Director of Internal
Audit also reports directly to the Audit and Compliance
Committee of Salomon Inc's Board of Directors.
Internal Audit is a global organization, with employees
located in our offices in New York, Tampa, London,
Frankfurt, Tokyo, and Hong Kong. Our control
responsibilities also extend to Salomon's Phibro
commodities trading operations in Westport, London,
and Singapore, and the Basis Petroleum operations in
the Houston area.
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