Avaliable as an in-house course only                                                                                                             

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.

PDF of course outline - Please note that tailoring is possible


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