BANK AUDIT APPROACH

 BANK AUDIT APPROACH
Based on the nature and thrust of operations, nature of adverse features, level of compliance of previous reports, and audit risks based on lack of, inadequacy in or breach of internal controls/ discipline and the familiarization exercise carried out, an audit plan should be drawn up.

A bank should have appropriate controls to manage its risks, including effective segregation of duties (particularly, between front and back offices), accurate measurement and reporting of positions, verification and approval of transactions, reconciliation of positions and results, setting of limits, reporting and approval of exceptions, physical security and contingency planning.