Introduction, Types of Audit, Principle Enactments Governing Bank Audit, Approach to Bank Audit, LFAR, and Documentation required in bank audit.

1. BANK AUDIT

2. PRESENTATIO
N PLAN
Introduction
Types of Audit
Principle Enactments Governing Bank
Audit
Approach to Bank Audit
• Know the Branch and its banking
• Understand Banking System
• Components of financial Statements
• Audit Procedure
• Conclusions
LFAR
Documentation

3. INTRODUCTION
■ BANK AUDIT
■ PURPOSE OF BANK AUDIT
■ RISK-BASED BANK AUDIT
■ AUDITOR’S EXAMINATION
■ VIOLATION OF LAWS
■ NECESSITY OF BANK AUDIT

4. TYPE OF AUDIT
STATUTORY
AUDIT
CONCURRENT
AUDIT
We chose Statutory Audit because this is an annual audit determined
by statute and done normally at the end of the financial year while
some of the larger branches are similarly audited half yearly

5. PRINCIPLE ENACTMENTSGOVERNING
BANK AUDIT
 Constitution of Pakistan 1973
1. Article 168
2. Article 169
3. Article 170
 Banking Companies Ordinance 1962
 State bank of Pakistan Act 1956
 Code of Corporate Governess 2017

6. APPROACHTO
BANK AUDIT
We chose Alfalah bank to
conduct its audit and explain
the way of auditing in which
we will tell you how to
conduct an audit of bank
• Know the branch
• Understand banking
software
• Components of financial
statement
• Audit procedures
• Conclusion

7. BRANCH AND
IT’S BANKING
■ Bank Alfalah Limited is
one of the largest private
Banks in Pakistan with a
network of over 700
branches in more than 200
cities across Pakistan with
an international presence in
Bangladesh,
Afghanistan, Bahrain and U
AE

8. UNDERSTAND BANKING SOFTWARE
■ There are following
software that Alfalah
bank used in its
Banking. Alfalah
Banking
Software
SME banking
(small and
medium
enterprise)
Temenose
Wavetech
Software
F5 Networks

9. COMPONENTS
OF FINANCIAL
STATEMENT
Balance Sheet Income
Statement
Cash flow
Statement
Statement of
changes in Equity
• Financial Statements represent a formal record of
the financial activities of an entity.
• These are written reports that quantify the
financial strength, performance and liquidity of a
company.
• Financial Statements reflect the financial effects of
business transactions and events on the entity.

10. AUDIT
PROCEDURES
Audit procedures are the
methods that auditors use
for obtaining audit evidence
to form a basis for their
opinion on financial
statements. Likewise, audit
procedures are performed in
order to test various audit
assertions related to
different class of
transactions and account
balances.

11. CONCLUSION
The auditor expresses an opinion as to whether:
■ The financial statements properly present in all material respects, the
entity’s financial position, the results of its operations, its cash flows and
its expenditure and receipts by appropriation; and,
■ the sums expended have been applied, in all material respects, for the
purposes authorized by Parliament, and have, in all material respects,
been booked to the relevant grants and appropriations.

12. LFAR- Long Form Audit
Report
A long-form report is an expanded form of audit
report that is issued by an external auditor. The
content of this report includes the following:
■ Auditor’s opinion;
■ Key risks;
■ Audit scope;
■ Percentage change in accounts;
■ Recommendations

13. DOCUMENTATION
Documentation involves:
 Proof of Pakistani Nationality
 Proof of
Employment/Business/Profession
 Documentary evidence of all sources
of income
 Copies of Bank Statement
 SBP specific information as per their
format
 Insurance disclosure forms (Insurance
Company specific)
 Copies of all title documents of
property to be financed

14. THANK
YOU!