BANK AUDIT

The bank audit is an important step for all banks who seeks a better optimization of its overall management. [...]
FACULTY OF LAW: ECONOMIC AND SOCIAL
Economics and Management
Option: Money, Finance & Banking
BANK AUDIT
Editor:
Mr. Prof. Driss FREJ & Ms. Iman AZAM
Prepared by: G. Nissrine & E. Iliasse
Academic Year: 2005-2006
The parts of memory: The bank audit
* The bank audit / Option: Money, Finance & Banking
* The bank audit: General Introduction
* The banking / Why a bank audit? / Chp1/PI
* The need for a bank audit / Why a bank audit / CHP2-PI
* The standards of a bank audit / Which practice of internal auditing Bank / chp1_PII
* Types of Internal Audit / Which practice of internal auditing Bank / chp2_PII
* The bank audit / General Conclusion
Contents: General Introduction: Part 1: Why would a bank audit?
Chapter 1: The banking sector
Section: The importance of banking in the financial system
1) The bank’s role in financing the economy
2) The banking reforms and their contributions to the economy
Section 2: The banking risks
1) Financial risks:
a) Interest rate Lerisque
b) Currency risk
c) Liquidity risk
d) The risk on variable-income securities
2) The counterparty risks
a) Potential Customer
b) Risk Interbank
c) Country risk
3) The technical and operational risks
a) IT risks
 IT risk “computer studies”;
 IT Risk 2 “computer processing;
 IT Risk 3 “telecommunication”
4) Commercial risks
a) Market risk
b) The risk in goods and services
5) The internal risk management
a) Regulatory risk
b) The risk of Ethics
c) Strategic risk
d) The risk of renal functional
e) Risk management staff
f) The risk of outsourcing
g) The risk of external communication
Chapter 2: The need for a bank audit
Section: Different types of bank audit
1) Internal Audit
2) The external audit
Section 2: Differences and complementarities
1) The differences between internal audit and external audit
2) complementarities and reconciliations
a) complementarities
b) Reconciliations
Part 2: What practice of internal auditing bank?
Chapter: The standards of a bank audit:
Section: Qualification Standards:
1) The duties, powers and responsibilities
2) The independence and objectivity
a) The organizational independence
b) Individual Objectivity
c) interference with the independence and objectivity
3) The skills and professional awareness
a) Skills
b) The professional consciences:
4) The program of quality assurance and improvement
a) An assessment of the quality program
b) The reports on program quality
c) The use of the word”standards”led
d) The indication of non-compliance
Section 2: The performance standards
1) The management of Internal Audit
a) Planning
b) Communication and Approval
c) Resource management
d) The rules and procedures
e) Coordination
f) Reports to the board and senior management
2) The nature of work:
a) Risk management
b) Control
c) Corporate governance
3) The mission planning
a) Considerations in planning
b) Objectives and Scope of the mission:
c) The resources allocated to the mission
d) The work program of the mission
4) The completion of the mission
a) Identifying information
b) Analysis and Evaluation
c) Documentation of information
d) Supervision Mission
5) A statement of results
a) The quality of communication
b) The indication of non-compliance:
c) Dissemination
Chapter 2: Types of internal audit:
Section: The operational audit:
1) The approach of the total audit
2) The strategic management
3) Management control
Section 2: The audit risk
1) The function and definition of audit risk
2) The objective of the audit risk
General Conclusion
Bibliography:
Publications:
Azzedine BERRADA Mohammed, Report of the Institute of the Mediterranean to FEMIS, Chapter 3, “the necessary evolution of the financial system”, July 2004
Bécours Jean-Charles and Henry BOUQUIN “Audit operational effectiveness, efficiency or security” ECONOMIA Edition 1996.
IFAC (French Institute of Audit and Internal Control) “Professional Standards of Internal Audit in June 2004, MPA (practicalities) 1000 – MPA 1300.
Jacques RENARD “Theory and Practice of Internal Auditing”, editions of organizations 2002.
ROUACH Michel Gérard Naulleau and “control of banking and finance, Statistical Bank, 1998.
Thesis and Dissertations:
ASSNI Abderrahim, “The concept of audit risk in the deposit banks’ memory of graduation in the senior management ISCAE Casablanca, February, 1993.
CHOW Naima, “Communication and audit within SMEs Moroccan’s Thesis PhD Economics, Dept.: Economic Strategy and Business Economics, FJESS – Agdal – 2001-2002.
Journals:
LAURETOU Denis “an opportunity and a challenge for the Internal Audit review bank, No. 666, February 2005.
Law, Order and circulars:
Banking Act of July 6, 1993.
Order of the Minister of Economy, Finance and Privatization and Tourism of October 6, 2000.
Circular No. 3/G/2001 coefficient on the minimum risk division.
Circular No. 4/G/2001 relating to minimum solvency ratio of credit institutions.
Webliography:
Standards for the Professional Practice of Internal Auditing in: www.ifaci.com / audit / pdf / normespdf
Map Bibliography
Introduction:
Part 1: Why would a bank audit?
Chapter 1: The banking sector:
Section 1: The importance of banking in the financial system:
Article I of the Banking Act of July 6, 1993
1) Role of the bank in financing the economy;
Mohammed Berrada Azzedine, Report of the Institute of the Mediterranean to FEMIS, Chapter 3, “the necessary evolution of the financial system”, July 2004, pages 97-99, 101-102.
2) The banking reforms and their contributions to the economy;
Mohammed Berrada Azzedine, Report of the Institute of the Mediterranean to FEMIS, Chapter 3, “the necessary evolution of the financial system”, July 2004, pages 104-105, 121-122.
Article 45 of the Banking Act of July 6, 1993
Article 45 of the Banking Act of July 6, 1993
Circular No. 4/G/2001 relating to minimum solvency ratio of EDC
Circular No. 3/G/2001 coefficient on the minimum risk division
Order of the Minister of Economy, Finance and Privatization and Tourism of October 6, 2000
Section 2: The banking risks:
1) Financial risks:
Gerard Michel Rouach and Naulleau “the control of banking and finance, banking edition, 1998. Page: 310.
a) The interest rate risk;
b) Currency risk;
c) Liquidity risk;
d) The risk on variable-income securities.
2) The counterparty risks:
Gerard Michel Rouach and Naulleau “the control of banking and finance, banking edition, 1998. Page: 312.
a) The customer risk;
b) The interbank exposures;
c) country risk;
3) The technical and operational risks:
MichelRouach and Gérard Naulleau “control banking and financial, banking edition, 1998. Page: 315
a) risks:
Ø IT risk a “computer studies”;
Ø 2 IT risk “computer processing;
Ø IT Risk 3 “telecommunications”.
4) Commercial risks:
Gerard Michel Rouach and Naulleau “the control of banking and finance, banking edition, 1998, pages 313-314.
a) Market risk;
b) The risk in goods and services.
5) The internal risk management:
Gerard Michel Rouach and Naulleau “the control of banking and finance, banking edition, 1998, pages 316-317
a) The regulatory risk;
b) The risk of ethics;
c) Strategic risk;
d) The risk of renal function;
e) Risk management personnel;
f) The risk of outsourcing;
g) The risk of external communication.
Chapter 2: The need for a bank audit
Section 1: The different types of bank audit
1) Internal audit:
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1100, pages: 1-2
2) The external audit:
LAURETOU Denis “an opportunity and a challenge for the Internal Audit review bank, No. 666, February 2005, page 66.
Jacques RENARD “Theory and Practice of Internal Auditing, Organizational .2002 editions, page: 68
Section 2: Differences and complementarities
1) The differences between internal audit and external audit:
Jacques RENARD “Theory and Practice of Internal Auditing”, editions of organizations, 2002, page: 67
CHOW Naima, PhD thesis Es economics: “Communication and audit within SMEs Moroccan, Dept.: Economic Strategy and Business Economics, FJESS – Agdal – 2001-2002. Pages: 63-64-65.
2) complementarities and reconciliations:
a) complementarities;
Jacques RENARD “Theory and Practice of Internal Auditing”, editions of organizations, 2002, page: 71
International Standards for the Professional Practice of Internal Auditing, page: 7
b) Reconciliations;
Jacques RENARD “Theory and Practice of Internal Auditing”, editions of organization 2002, pages: 74, 75.
Part 2: What practice of internal auditing bank?
Chapter 1: The standards of a bank audit:
Section 1: Qualification Standards:
1) The duties, powers and responsibilities;
2) The independence and objectivity:
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1100, pages: 3
a) Independence in the organization;
b) Objectivity individual;
c) interference with the independence and objectivity;
3) The skills and professional awareness:
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1130.A1, page: 4.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1130, page 4.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1130.C2, page: 4.
a) skills;
b) The professional conscience;
4) The program of quality assurance and improvement:
a) An assessment of the quality program;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1200, pages 4 and 5.
b) The reports on program quality;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1300, pages 5 and 6.
c) The use of the term”conduit”standards;
d) The indication of non-compliance.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 1300, page 6.
Section 2: The performance standards:
1) The management of internal audit:
a) Planning;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities, 2000, page 7.
b) Communication and Approval;
c) The management of resources;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2030, page: 7
d) The rules and procedures;
e) Coordination;
f) Reports to the board and senior management.
2) The nature of work:
a) Risk management;
b) Control;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practical arrangements for implementing 2120. A1, page: 9.
c) Corporate governance.
Professional Standards of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2130, Page: 20
3) The planning of the mission:
a) Considerations in planning;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2201, page 10
b) Objectives and Scope of the mission;
c) The resources for the mission;
d) The work program of the mission.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2200, page 10.
4) The completion of the mission:
a) Identifying information;
b) The analysis and evaluation;
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2300, page 11.
c) The documentation of information;
d) The oversight mission.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2300, pages 11 and 12.
5) Communicating the results:
a) The quality of communication;
b) The indication of non-compliance;
c) The dissemination of results.
Standards for the Professional Practice of Internal Auditing, published by the French Institute of Audit and Internal Control, 2004, practicalities 2400, pages 12 and 13.
Chapter 2: Types of internal audit:
Section 1: The operational audit:
Jean-Charles and Henry Bécours BOUQUIN “Audit operational effectiveness, efficiency or security” ECONOMIA Edition 1996, pages: 11-18
1) The overall audit approach:
Jean-Charles and Henry Bécours BOUQUIN “Audit operational effectiveness, efficiency or security” ECONOMIA Edition 1996, Page: 33
2) Strategic management:
Jean-Charles and Henry Bécours BOUQUIN “Audit operational effectiveness, efficiency or security” ECONOMIA Edition 1996, pages: 81-85.
3) Management control:
Jean-Charles and Henry Bécours BOUQUIN “Audit operational effectiveness, efficiency or security” ECONOMIA Edition 1996, pages: 89, 104-105.
Section 2: The audit risk:
1) The function and definition of audit risk:
Assni Abderrahim “the concept of audit risk in bank deposit” Memory graduate management ISCAE 1993, pages: 32-36.
2) The objective of the audit risk:
Assni Abderrahim “the concept of audit risk in bank deposit” Memory graduate management ISCAE 1993, pages: 52-60, 61-69.