Bank Internal Audit School - OAP385

Description

This four-day course is designed to provide internal auditors with the key skills that they require prior to commencing internal auditing assignments within financial service institutions. Looking at the various different components of the banking industry, the course considers the internal audit approaches that would be appropriate and assists delegates to design suitable internal audit programs for such assignments.

This course is based on the application of the risk based approach and the key risks of each area will be considered throughout. Real-life examples will be used to illustrate the significance of the issues considered.

By attending this course, delegates will obtain a general appreciation of the application of the risk based approach and the internal audit approaches that are suitable. Specifically they will consider the auditing approaches within:

  • Retail banking
  • Corporate banking
  • Private banking
  • Financial instruments

What you will learn

You will learn how to develop programs, risk assessments, planning, essential testing procedures and reporting. You will learn about many commercial and personal banking products, investments, trading rooms, and money transfer mechanisms.


Objectives


How to Audit a Bank:

  • planning
  • materiality
  • risk appetite
  • the risk assessment exercise
  • fraud and money laundering deterrence responsibilities
  • the relationship to external audit
  • home/host regulation
  • branch and representative office audits
  • introduction to the basel accord
  • case study/exercise: preparing an audit planning memorandum

Deposits and Deposit Taking:

  • how are banks funded
  • current accounts
  • deposit accounts
  • retail funding
  • customer identification
  • the customer recording process
  • payments in and out of deposits
  • dormant accounts
  • notice accounts
  • reporting deposits
  • key risk issues within deposits and deposit taking
  • case study/exercise: developing an audit program for deposits and deposit taking

Funds Transmission and Clearing Services:

  • payment mediums
  • bulk paper clearing
  • cash and debit cards
  • credit cards
  • internet banking
  • ATM machines
  • swift and international payments
  • Case Study/Exercise: Developing an audit program for funds transmission and clearing services

Personal Lending:

  • the customer
  • connected lending
  • overdrafts
  • personal loans
  • mortgage lending
  • retail customer analysis
  • credit scoring
  • use of external agencies
  • know your customer
  • the drawdown process
  • reporting personal lending
  • Case Study/Exercise: Developing an audit program for personal lending

Corporate Lending:

  • the customer
  • connected lending
  • the credit application
  • rating agencies
  • project finance
  • structured lending
  • sovereign debt
  • reporting corporate lending
  • Case Study/Exercise: Developing an audit program for corporate lending

Security and Provisioning:

  • introduction
  • fixed charges
  • floating charges
  • guarantees
  • mortgages
  • provisioning
  • Case Study/Exercise: Developing an audit program for security and provisioning

Trade Finance and Finance of Trade:

  • trade finance defined
  • bills of exchange
  • promissory notes
  • export credits
  • factoring and forfeiting
  • invoice discounting
  • Case Study/Exercise: Developing an audit program for trade finance and for finance for trade

Branch Banking:

  • which roles are conducted at branches
  • the nature of the audit work to be conducted
  • reviewing branch records
  • human resources issues
  • compliance issues
  • reporting and management
  • Case Study/Exercise: Developing an audit program for a retail bank branch

Private Banking:

  • the services of a private banker
  • asset management
  • offshore bank accounts
  • politically exposed persons
  • key risks in personal banking
  • Case Study/Exercise: Developing an audit program for private banking

Investment Banking:

  • long-term finance
  • venture capital
  • debt financing
  • underwriting
  • structured finance
  • due diligence processes
  • documentation and liability
  • income generation
  • Case Study/Exercise: Developing an audit program for investment banking

Dealing and the Dealing Room:

  • the difference between the trading book and the banking book
  • the deal process
  • telephone dealing
  • electronic dealing
  • controls and the control environment
  • the BASEL rules on operational risk
  • compliance and general conduct
  • Case Study/Exercise: Developing an audit program for dealing and the dealing room

Foreign Exchange:

  • calculating foreign exchange rates
  • the foreign exchange market
  • the language of foreign exchange
  • spot rates and cross rates
  • systems of accounting
  • international accounting standards
  • principles of valuation
  • Case Study/Exercise: Developing an audit program for foreign exchange

Forward Contracts:

  • calculating forward foreign exchange rates
  • advantages and disadvantages
  • positions and hedging
  • spot and forward transactions
  • principles of valuation
  • forward rate agreements
  • forward – forward contracts
  • international accounting standards
  • Case Study/Exercise: Developing an audit program for forward contracts

Futures and the Futures Market:

  • introduction to financial futures
  • futures exchanges
  • types of futures contracts
  • quotation of futures contracts
  • margin accounting
  • confirmation and control
  • Case Study/Exercise: Developing an audit program for futures and the futures market

Options and the Options Market:

  • introduction to options
  • types of options contract
  • premiums, margin and exercise
  • option terms
  • option payoffs
  • confirmation and control
  • Case Study/Exercise: Developing an audit program for options and the options market

Swaps and the Swaps Market:

  • interest rate swaps
  • currency swaps
  • advantages of swap structures
  • pricing a swap
  • credit risk and collateral
  • ISDA documentation
  • hedging and hedge accounting
  • control and confirmation
  • Case Study/Exercise: Developing an audit program for swaps and the swaps market

Further information

ACI Learning
Provider:
ACI Learning
Duration:
4 Days
Price:
POA
Availability:
Scheduled dates
Course type:
Classroom
Locations:
Amsterdam, Atlanta, GA, Bandar Seri Begawan, Boston, MA, Burlington, MA, Cape Town, Charlotte, NC, Chicago, IL, Dallas, TX, Denver, CO, Dubai, Dublin, Dublin, OH, Hong Kong, Houston, TX, Las Vegas, NV, London, Manila, New York, NY, Oman, Orlando, FL, Philadelphia, PA, San Antonio, San Diego, CA, San Francisco, CA, Seattle, WA, Singapore, Virtual Training Room Only, Washington, DC

Contact Information

ACI Learning

6855 S. Havana St.
Suite 230
Centennial
80112 USA

Credentials

Locations