BANK INTERNAL AUDIT: BEST PRACTICE TECHNIQUES

It has become obvious that today’s internal auditors require more management-oriented, advisory and performance assessment skills and a broader range of competences than simply accounting and financial expertise. As you come face-to-face with these challenges, new approaches are necessary to keep you moving forward and to assist your bank to identify, monitor and control risk.

Modern internal audit must add demonstrable value in the current competitive environment, and the increasing expectations of regulators, governments and professional bodies reflect the growing importance placed on the function.

In particular, the Basel Committee on Banking Supervision’s 20 Internal Audit Principles, and the revised Standards of the Institute of Internal Auditors reflect two of the most significant developments to affect bank internal audit in recent years.


This course is designed for internal audit managers, in the banking and financial sector, who are seeking to enhance their skills and bring their knowledge and audit techniques up-to-date in line with international best practice. It will also benefit supervisors and others who need to assess internal audit arrangements against laid down standards and business needs.

This course will provide the delegates with:

	An authoritative update on current developments in the world of internal audit and the audit of banking operations in particular
	Interpretation and application of the very latest guidance on bank internal audit, including the BIS Basel Committee’s Best Practice Principles, and the Standards of the Institute of Internal Auditors.
	Modern audit techniques such as business process auditing, risk-based auditing, audit in partnership, control self-assessment and other developments in international best practice
	Illustrations of the use of standard and leading edge audit methods by reference to selected banking activities
	Opportunity to relate international and regional developments in audit principles and practices to the local environment, considering their relevance and means of adoption

Course Programme

DAY ONE: THE CURRENT INTERNAL AUDIT ROLE AND ENVIRONMENT

	The nature of modern internal audit: adding value
	The internal audit environment: challenges and opportunities
	The current banking environment, regulation, governance and performance
	The Basel Committee on Banking Supervision: Best Practice Internal Audit in Banks
	Professional developments, including the latest IIA Standards
	Bank internal audit in practice: putting the ideas into operation
	Case histories: strategic issues

DAY TWO: DEVELOPMENTS IN BANK INTERNAL AUDIT

	The 20 Basel Principles of Internal Audit
	Defining internal audit’s work
	The 18 principles
	Principles of internal audit
	Functioning of internal audit, audit committees, and outsourcing
	Risk-based auditing
	Exercises and worked examples: operational issues

DAY THREE - INTERNAL CONTROL AND CONTROL EVALUATION

	Banking risks and exposures
	Internal audit evaluation of risk and controls: leading edge techniques
	Control and control frameworks: applying COSO and other models
	The Basel Committee on Banking Supervision: Framework for Internal Control Systems in Banking Organisations
	Objectives, role and elements of the internal control framework
	Annual control reporting
	Risk management standards and structures
	Introducing corporate governance regimes
	Control self-assessment
	Lessons from control failures

DAY FOUR - THE INTERNAL AUDIT OF BANKING OPERATIONS

	Deciding the scope of audit work
	Auditing strategic activities, including risk management, corporate ethics, business planning and reputation management
	Auditing operational activities, eg treasury, securities, quality of service, ATMs, regulatory compliance, money laundering, credit risk management, etc
	Electronic auditing: audit and control implications of e-commerce, internet banking
	Using IT for audit purposes