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Internal and External Audit Overview

The document discusses various types of internal and external audits that bank treasuries undergo. It notes that treasuries are divided into front, middle, and back offices for internal checks. Concurrent audits are conducted by external auditors, and external audits are becoming more risk-based. The Reserve Bank of India also inspects treasuries annually as part of overall bank inspections. Statutory auditors appointed by the RBI conduct annual audits. Off-site surveillance and board reviews provide additional oversight of treasury functions.

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150 views10 pages

Internal and External Audit Overview

The document discusses various types of internal and external audits that bank treasuries undergo. It notes that treasuries are divided into front, middle, and back offices for internal checks. Concurrent audits are conducted by external auditors, and external audits are becoming more risk-based. The Reserve Bank of India also inspects treasuries annually as part of overall bank inspections. Statutory auditors appointed by the RBI conduct annual audits. Off-site surveillance and board reviews provide additional oversight of treasury functions.

Uploaded by

9722274593
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Internal & External Audit

Prepared by : Niraj M Pandya ID No : 11PGDM004

OBJECTIVE
To explain various types of internal & external surveillance that the Treasuries are subjected to during their functioning.

Internal Checks/Control
As a measure of internal check and control the banks treasury is divided into front office, back office, and middle office with specific and exclusive functions which ensure checks and balances.

Concurrent Audit
The treasury function is also subject to concurrent audit. There is a mandatory system of concurrent audit by external auditors of all treasuries. Auditors with repute and expertise in treasury functioning are appointed by the bank to conduct concurrent audits of the treasuries.

External Checks/Audits
The nature of the concurrent and external audits is changing now, and becoming more of risk based audits transaction based inspections. The auditors identify the risks in various situation of treasury, and also grade the risk as low, medium, and high and also quantify the impact on the unit.

Inspection By RBI
Another important type of external audit is the inspection of treasury by RBI as part of AFI (Annual Financial Inspection) of the bank at yearly rests. This inspection will be a very elaborate and detailed one, covering all important aspect of treasury.

Conti
The inspector will look into various policies formulated by the treasuries to determine whether they conform to the regulatory guidelines.

Statutory Audit
The statutory auditors are appointed by RBI to conduct the audit of the bank every year.

Off site surveillance

Board Review

Thank-You

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