SEACEN Workshop on "Inward Review OF National BANKS" Taipei, Taiwan, R.O.C. 14-17 September 2004.


42 views
Uploaded on:
Description
2. SEACEN Seminar. Composed by:South East Asian Central Bank Research
Transcripts
Slide 1

SEACEN Seminar on "Inner AUDIT OF CENTRAL BANKS" Taipei, Taiwan, R.O.C. 14-17 September 2004 Presented by Shamsul Islam Junior Joint Director Audit Department

Slide 2

SEACEN Seminar Organized by: South East Asian Central Bank Research & Training Center (SEACEN Center) Malaysia. Financed by: Bank of Japan (BOJ) Hosted by: The Central Bank of China (CBC)Taiwan.

Slide 3

Central Bank of China

Slide 4

Royal Monetary Authority of Bhutan Ministry of Finance, Brunei. Hold Bank of Fiji. Bank Indonesia The Bank of Korea Bank Negara Malaysia The Bank of Mangolia. Nepal Rastra Bank State Bank of Pakistan. Bank of Papua New Guinea. Bangko Sentral ng Pilipinas. National Bank of Sri Lanka. The Central Bank of China, Taipei. Bank of Thailand. Managing an account and Payments Authority of Tinor – Leste. Course Participants 30 members from the accompanying 15 Central Banks/Monetary Authorities/Ministry of Finance.

Slide 5

Resource Persons. Mr. John Graham Joscelyna CA(SA) CIA Director International Services UHY Advisers Inc. Mr. Noriyuki Tomioka Director Internal Auditors\' Office Bank of Japan. Dr. JIIN – FENG CHEN Associate Professor Department of Accounting, College of Commerce, National Chengchi University.

Slide 6

ISSUES FOR DISCUSSION IN THE SEMINAR. Part of Internal Audit in Governance. Distinguishing proof of holes in the Internal Audit Function and Opportunities for Improvement. Inside Audit in the Risk Management Process. Utilizing on Automation and Information Technology in Audit Engagements. Effect of Regulations on Internal Audit. Outsourcing of the Internal Audit Function. Industry\'s Best Practices in Internal Audit.

Slide 7

1. Part of Internal Audit in Governance Entire review handle straightforwardly or in a roundabout way connected with Governance Process. Review is an on going Governance Process through assessment of the System of inside controls.

Slide 8

What ought to Governance intend to Audit. Procedure of oversight at board level. Relationship amongst board and administration. Association of official capacities Information stream Key Control Process . Straightforwardness Authority Accountability Impacts the Bank through and through. Decides the control environment. Impacts the bank\'s way of life.

Slide 9

Pre-essential for Auditors in connection to Governance Authority in Internal Audit Charter/IA Mandate. Skill with respect to Auditors. Genuine longing of Board and Management to incorporate Auditors.

Slide 10

What ought to be examiner\'s association with his auditees. Facilitator Picking up on their issues. Addressing them on their requirements. Instructor Verification Checklist Sharing prescribed procedures Sharing development in Governance rehearse. Audience Listen more from auditee with the goal that reviewer may instruct and encourage them.

Slide 11

What can Auditor do? Share Professional Best Practices What reporting works best. Convenience of an autonomous review Usefulness of review to the auditee. How esteem is added to the execution of auditee. Concur Audit Charter with the Board and Management. Reporting of Audit exercises to the Board. Share International Internal Audit Standards and what they mean.

Slide 12

Objectives of these exercises Auditor has a voice in the Governance field. Reviewer increases the value of the perspectives of the auditee. Evaluator is proficient. Inspector has a free voice.

Slide 13

Increase understanding concerning: Code of Ethics. Control Framework in the Bank. Concurrence on evaluator\'s work. Concession to the dangers taken by the Bank. Concurrence on what examiner can and ought to do.

Slide 14

Reliance is additionally looked for from different players. Chance Managers. Consistence Officer. Outside Auditor.

Slide 15

Auditor\'s administration in Governance Process. Including esteem at the most elevated amount. Working at a vital level. Encouraging. Empowering.

Slide 16

2) Identification of Gaps in the Internal Audit Function and open doors for development. Crevices IIAs benchmarks. Negative origination with respect to Auditors. Level of skill in hazard based examining. Reviewer as "guard dog" and "faultfinder". Less accentuation on logical review programs. Outlining and executing of stream graphs in review prepare. Arrangement of check rundown and their applications. Outlining of poll for the auditee.

Slide 17

Gaps Cont… … Central Bank encounter – Professional capabilities. Proficient capabilities – Central Bank understanding. I.T. specialists - Experience of Central Bank working. National Bank working knowledge - I.T. ability. Absence of coordination and comprehension amongst Internal and External Auditors.

Slide 18

Opportunities for development: Adoption of IIAs Standards. To additionally teach the auditee with tolerance conduct. To expand the level of competency in hazard based inspecting through preparing and by changing review strategy. To switch over in part of reviewer from "guard dog" and "faultfinder" to the teacher/facilitator/coach. To plan logical review projects To outline and actualize stream graphing. To utilize check rundown and survey amid the review procedure.

Slide 19

Opportunities for development: cont\'d… .. To organize short courses/preparing for the authorities who have a great looking knowledge however a long ways behind the expert capabilities with respect to review. Examiners other than I.T. ought to grant the I.T. preparing. Best level administration/Audit Committee ought to guarantee the coordination and better comprehension amongst Internal and External evaluators.

Slide 20

3. Inward Audit in the Risk Management Process. Change in the part of Audit. Guard dog/Faultfinder – Risk identifier/instructor. Change in Audit Methodology. Consistence based review/Financial review – Risk Based review.

Slide 21

Risk Based Audit Process Understanding of dangers confronted. Surveying the exposures.

Slide 22

Risk Based Audit Process Cont\'d… … Gather data and plan. Information of offices/fragments/goals. Comprehension of operations and techniques. Earlier year\'s review comes about. Administrative statutes, endorsed arrangements. Distinguishing hazard connected with fragment/prepare.

Slide 23

Risk Based Audit Process Cont\'d… … Obtain comprehension of Internal Control environment. Control systems. Matches of related dangers with controls.

Slide 24

Risk Based Audit Process Cont\'d… … Perform Audit Tests Test viability of controls and other substantive review methods.

Slide 25

Risk Based Audit Process Cont\'d… … Conclude the Audit Analyze the review discoveries. Talk about with departmental heads and reach determination. Suggestion for enhancements. Draft Report.

Slide 26

Risk Evaluation Family Internal Auditor Risk Manager Compliance Officer or Unit External Auditor

Slide 27

Risk Based Audit Process Cont\'d… … Auditor\'s own particular Risks. Unequivocal Audit. Conveying the correct review item. Guaranteeing the nature of work. Keeping up proficient notoriety Managing Human Resources.

Slide 28

4. Utilizing on Automation and Information Technology in Audit Engagements. Why the mechanization is need of the time? To increment in effectiveness & efficiency of Audit. To increment in exactness. To kill stockpiling of work papers. To empower immediate interchanges. To allow access of data by means of Internet. To lower review cost. To quicker the review procedure.

Slide 29

Overall status of mechanization. Starting/center stage. Working is being computerized. Planning of programming. Parallel Runs. Incompletely live working. Finish live working.

Slide 30

Usage of Software Tools. In-house advancement. Outsourcing the computerization. Readymade Softwares.

Slide 31

Automation status in other Central Banks - SRILANKA Payment System with - Real Time Gross Settlement (RTGS) Government Debt Security Management with - Scriptless Securities Settlement System (SSSS). Treasury and International Reserve Management with – Treasury Dealing Room Management System (TDRMS).

Slide 32

Computer Assisted Audit Tools and Techniques (CAATTs). Readymade Softwares Audit Command Language (ACL). Sarbox Portal (SP) Risk and Control Tracking System (RCTS). Control Assessment Template (CAT). Chance Navigator (RN). Colleague (TM). Office-Suite Software.

Slide 33

Sarbanes – Oxley Software 10 th Annual Survey of Internal Audit Utilization of Software Tools Why are you not utilizing Sarbanes – Oxley Software? Our Company is not subject to Sarbanes – Oxley – 79%. Another Department in our association handles Sarbanes – Oxley consistence 5%, Sarbanes – Oxley consistence is outsource at our Organization – 1%. These sorts of instruments are excessively costly – 8%. Others – 10%.

Slide 34

Summary of the Survey Results.

Slide 35

5. Effect of Regulations on Internal Audit Rules and Regulations might be National or International. Assess how can it affect the Bank? Shouldn\'t something be said about its partners?

Slide 36

Rules and Regulations may identify with: Best practices. Driving Central Bank rehearses. IMF proposals or requests. Tax evasion Reserve Management. Electronic Banking. Sound accounting standards. Worldwide Accounting Standards. Global models of Auditing. Pay Tax Laws. Standards and Regulations confined by SEC. Corporate Governance Rules.

Slide 37

Impact on review because of consistence of guidelines and Regulations Cost. Duty Control Establishment Scope.

Slide 38

Compliance of Regulations is each one\'s business, in this way: Is it in the hazard appraisal? Is it comprehended in the Bank\'s control surroundings? Is it in the control exercises of the Bank? How does administration see and acts? How are administrative issues conveyed?

Slide 39

In consistence of the Regulations, data, c

Recommended
View more...