Uplatz provides this comprehensive course on How to conduct Bank Audit and become a Bank Auditor. It is a self-paced course consisting of pre-recorded video lectures. You will be awarded Course Completion Certificate at the end of the course.
What is a Bank Audit?
A bank audit is a formal process in which the services, systems, financial statements, and/or procedures of a bank, credit union, or other financial institution is reviewed and summarized in a report. Every financial service company must undergo audits regularly in order to comply with legal and jurisdictional regulations, laws, and industry standards.
A bank audit is a normal practice that examines financial organizations' services to verify that they comply with laws and industry standards. The audit is carried out by a bank auditor, who is an accounting professional. Internal and external audits of banks and credit unions are both possible. A bank or credit union audit focuses on compliance. Its goal is to see whether the financial actions of the institution are accurate, lawful, and comprehensive. Its main objective is to give an unbiased assessment of the bank's operations, controls, and information systems. System tests are performed, conclusions are produced, and auditors propose remedial steps for the bank to take.
To guarantee accuracy, completeness, and timeliness of transaction recording, the auditor reviews financial transactions, bank wires, automated clearing house (ACH), and bank account monetary flow. Financial and regulatory reports are scrutinized to see whether they were submitted in accordance with the law. Tests are carried out to discover transactions that are incorrect, incomplete, or unlawful. Control testing is done to determine if the bank is running in a safe and efficient manner.
What Do Bank Auditors Do?
Bank audits are performed by a kind of accounting specialist called a bank auditor. A bank audit can be done as an internal audit, which is run by an employee of the financial institution, or it can be done as an external audit, which is run by an independent auditor under the direct guidance of a certified public accountant (CPA).
What Is The Purpose of a Bank Audit?
Bank audits serve many purposes.
Here are a few common areas and metrics that a bank audit will evaluate within a financial institution:
- Security and risk management, including operational, strategic, reputation, credit, compliance, and IT and cyber risk
- Liquidity and monetary flow
- Financial transactions, including bank wires and automated clearing house (ACH) networks
- Financial and regulatory reports
- Whether a financial institution is correctly following its own policies and/or operating in compliance with legal and best-practice standards
- Whether there is any evidence of law violations, money laundering, fraud, and any other anomalies
Above all else, the main goal of an audit is to make sure a financial institution is operating in line and above board with all industry and local regulations.
How Long Does A Bank Audit Take?
Bank auditors will typically spend about three months investigating a bank's financial activities, risk management processes, systems, and procedures to make sure that all related information is complete, timely, and accurate.
What Happens After The Bank Audit Is Finished?
Once auditors have had the chance to test and evaluate their findings, they can compile a report or audit opinion that outlines any feedback or corrective steps that a bank needs to take in order to remain in compliance.
If the audit was done externally, the results will be shared with stakeholders and creditors. As you can see, bank audits are important for ensuring the integrity of a financial institution and its practices. Undergoing audits and responding to the feedback generated by audits protects not only a financial institution's management, but also its shareholders, creditors, lenders, and clients.
While bank audits can certainly be stressful experiences, they can be made more streamlined through the use of auditing software and related services.
