(a)

that the institution’s initial coverage and plan for sequential implementation of the IRB Approach are adequate, in accordance with Article 7;

(b)

that the exposure classes, types of exposures or business units where the Standardised Approach is applied are eligible for permanent exemption from the IRB Approach.

(a)

review the institution’s plan for sequential implementation of the IRB Approach;

(b)

review the institution’s relevant internal policies and procedures, including the calculation methods for the share of exposures to be covered by the sequential implementation of the IRB Approach and the permanent exemption from the IRB Approach;

(c)

review the roles and responsibilities of the units and management bodies involved in the assignment of individual exposures to the IRB Approach or the Standardised Approach;

(d)

review the relevant minutes of meetings of the institution’s internal bodies, including the management body, or committees;

(e)

review the relevant findings of the internal audit function or of other control functions of the institution;

(f)

review the relevant progress reports on the effort made by the institution to correct shortcomings and mitigate risks detected during audits;

(g)

obtain written statements from the relevant staff and senior management of the institution or interview them.

(a)

review the functional documentation of the IT systems used in the process of the assignment of individual exposures to the IRB Approach or the Standardised Approach;

(b)

conduct sample testing and review documents relating to the characteristics of the obligors and to the origination and maintenance of the exposures included in the sample;

(c)

review other relevant documents of the institution.