Banking Internal Audit and Control

Objectives

To introduce participants to the procedures and practices for carrying out a successful department audit within their banks, so that after attending the course the participants will be able to carry out their audit duties in a professional and competent manner.
To explain to managers and operational staff the role of the internal auditor.
To assist with the establishment of an Audit Policy, and to influence and facilitate change within the organisation.

Course Content

Day One

Why the auditor is there?

• privatisation – international acceptance
• shareholders/customers/staff protection etc
• compliance versus verification of figures
• the needs of the regulators
• working in partnership with management
• the position of the internal auditor
• his/her role within the organisation
• reporting lines (independence)

What the auditor does – how he/she decides or is decided for him/her to audit – the importance of having clear scopes so that audit are focused not scattergun effect.

The audit team

• structure/skills/competencies
• establishment of policy
• reporting lines

The attributes of a successful auditor

• communication skills – presentation/spoken/written
• analytical skills
• logical approach – think clearer
• lateral thinker – problem solver

The difference between audit and “Revisor” (inspection) – verification of balances/testing against internal rules/regulations.

Fraud/defalcation/security of staff/systems developments and testing.

Computer systems, the specialist role of the computer auditor.

The establishment of audit policy – the use of audit as a strategic management tool. Who decides – who implements – why.

(Section/departmental/branch/management/general management – Snap Checks) Audit is the responsibility of ALL management.

When to Audit in relation to risk assessment, internal rules, external and legal requirements

• daily – weekly – monthly – quarterly – annually etc.

How to sample – statistical – random – sample sizes – observation – computer based.

The significance and use of audit trails

• the importance of record keeping/working papers.

Day Two

The structure of an audit assignment

• work programmes (use examples of operational and credit work programmes).

Management controls

• why – who – when – what

Routine checks/controls

• daily – weekly – monthly etc

Key areas of risk/compliance testing

• Asset protection
• cash – moveable assets – asset and liability balances
• Operational system controls
• computer accounting terminals separation of duties
• different levels of access to preserve security and confidentiality
• spending/lending/decision discretions.

Internal Suspense account controls

• nostro/vostro accounts etc.

Compliance with external regulatory bodies

• liquidity/solvency/money laundering etc

How to manage “Snap Checks”

• who – when – what – how – where.

Operations auditing

• Application of sampling techniques to operational examples
• testing against internal rules
• key areas of operational risk
• input checks and controls
• cash/bearer securities/commodities
• treasury/trading areas (dealing stocks/forex)
• internal sundry and suspense accounts
• reconciliation of nostro accounts (what is a nostro/vostro a/c)
• securities handling
• payment systems

Credit auditing

• Why audit credit – the impact on the P & L account and the Balance Sheet.
• Provisioning policy
• Credit issues
• Credit policy – internal/external imposition
• Sectoral risk
• Cluster risk
• Country risk

Internal/external risks

• Political, social, climatic, environmental, geographic etc. (Use SWOT analysis)
• Computer (system/system failure/strategic limitations/implications)
• Management auditing – how effective is management (all levels)

Reputational risk

• Customer/shareholder/statutory authority – the impact on profitability (“confidence is a fragile commodity” – the repercussions of management failure)

How to deliver the findings – report writing.

• Value judgements?
• Formal report – structure?
• Reporting lines – board/management/supervisory management?

The responsibilities of the external auditor

• the relationship with the ultimate management/supervisory authorities/shareholders.

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.