Banking audit. Main areas of banking audit (most important)

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Banking audit. Main areas of banking audit (most important)

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55. Main directions of banking audit

A variety of forms of ownership and the revival of market relations create the prerequisites for reforming the methods of financial control over the economic and commercial activities of banks.

The founders and shareholders are vitally interested in an independent assessment of the state of affairs, and along with traditional forms of control, the degree of quality of their firms is established by a special service - the audit service: internal and external, widely functioning in the international market sphere.

External audit is carried out by independent audit firms, its main purpose is to confirm the reliability of financial statements.

Internal audit can be considered as a system of internal control and a system of bank security measures in order to protect the interests of depositors, maintain and achieve specific results in the bank's activities. It includes a set of bank plans, methods and procedures used within it to protect assets, increase profits, and ensure that the instructions of the bank's management are strictly followed.

Internal audit is organizationally presented as a structural subdivision of the bank and reports to the head of the bank. The tasks of internal audit can be varied: checking the correctness of accounting; verification of the correctness of maintaining accounts for income and expenses (the legality of attributing expenses to certain items, the legality of the generated profit, the timeliness of writing off expenses on accounts, and so on); verification of the legality of certain operations and more. For the organization and conduct of internal audit, it is recommended to develop methodological guidelines or instructions that should determine the process of conducting control in this area of work. Internal audit is carried out in accordance with the approved annual plans. The audit manager is fully responsible for the entire organization and conduct of the audit.

Internal audit can be seen as an integral part of the overall management control system. Initially, the role of the audit was determined by the tasks of financial management and ensuring the safety of assets and was of a total nature at a detailed level. With the increasing complexity of control, the focus has shifted to confirming the completion of cycles of certain intra-system control procedures. Subsequently, the attention of auditors began to focus not only on how the control and information processing systems function, but also how effective they are in achieving the goals for which they are intended, and what improvements can be made to them.

Recently, in many organizations, the role of internal audit has been expanded to include an assessment of the quality of information issued by the management information system and forming the basis for decision-making, as well as an assessment of the usefulness of the information analysis methodology used.

Internal auditors work in both the public and private sectors. The objective of internal audit is to help relevant employees perform their duties as efficiently and effectively as possible. The internal auditor checks the accounting information and its reliability. Internal auditors report to senior management and usually have links to the board of directors and other management units.

External audit of banking activities has a number of features that require the creation of specialized audit organizations. The fact is that during audits of banks and other financial and credit institutions, various aspects of economic activity are considered, both the credit system itself and the servicing economy. This imposes on the auditors a special responsibility for the quality of the surveys, the objectivity and reliability of the conclusions, since the results of the audit serve as the basis for confirming the annual report, publishing the balance sheet and the overall assessment of the results of the credit institution.

Author: Shevchuk D.A.

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