The document discusses auditing in banks. It outlines that bank auditing has a board of directors and audit committee that oversee internal audit members. The objectives of audits are to monitor internal controls, examine financial information, and review operations. There are three main types of audits: financial audits examine accounting records, operational audits review internal controls, and compliance audits ensure adherence to regulations. Audits also make assertions about transactions and account balances to ensure things like occurrence, completeness, and accuracy.

1. Auditing in banks
MUTWIRA G

2. Structure/ Governance
 Board of Directors
 Audit Committee
 Audit members

3. Audit Objectives

4. Audit Activities
 Monitoring of internal control
 Examination of financial and operating information
 Review of the economy, efficiency and effectiveness of operations
 Review of compliance

5. Types of Audits
 Financial Audits
 Operational Audits
 Compliance Audits

6. Financial Audits
 Internal auditors may be asked by management to review accounting
records and other records to substantiate figures appearing in financial
statements and management accounts.

7. Operational Audits
 Operational audits examine the entity’s internal control procedures and
whether or not the control systems that have been established by
management are operating effectively.
 As a result of the audit, he internal audit department will make
recommendations to management for improvements to the system or the
way in which it is operated.
 Trying on maximize on the 3 Es (efficiency, effectiveness, and economy)

8. Compliance Audits
 Entities are subject to a large number of laws and regulations, and they
may be exposed to the risk of regulatory action by the authorities if they
fail to comply with the regulations.
 Health regulations, ablution facilities.
 Population given Covid19,

9. Audit Assertions
 Are the implicit or explicit claims and representations made by the
management responsible for the preparation of financial statements regarding
the appropriateness of the various elements of financial statements and
disclosures.
 Transactions include sales, purchases, and wages paid during the accounting
period. Account balances include all the asset, liabilities and equity interests
included in the statement of financial position at the period end.

10. Assertions about classes
 Occurrence - the transactions and events that have been recorded or
disclosed, have occurred, and such transactions and events pertain to the
entity.
 Completeness - all transactions and events that should have been recorded
have been recorded and all related disclosures that should have been
included in the financial statements have been included.
 Accuracy – amounts and other data relating to recorded transactions and
events have been recorded appropriately, and related disclosures have been
appropriately measured and described.
 Cut–off – transactions and events have been recorded in the correct
accounting period.

11. Assertions about classes
 Classification – transactions and events have been recorded in the proper
accounts.
 Presentation – transactions and events are appropriately aggregated or
disaggregated and clearly described, and related disclosures are relevant and
understandable in the context of the requirements of the applicable financial
reporting framework.

12. Assertions about account balances
 Existence – assets, liabilities and equity interests exist.
 Rights and obligations – the entity holds or controls the rights to assets, and
liabilities are the obligations of the entity.
 Completeness – all assets, liabilities and equity interests that should have been
recorded have been recorded and all related disclosures that should have been
included in the financial statements have been included.
 Accuracy, valuation and allocation – assets, liabilities and equity interests have
been included in the financial statements at appropriate amounts and any
resulting valuation or allocation adjustments have been appropriately recorded
and related disclosures have been appropriately measured and described.

13. Assertions about account balances
 Classification – assets, liabilities and equity interests have been recorded in the
proper accounts.
 Presentation – assets, liabilities and equity interests are appropriately
aggregated or disaggregated and clearly described, and related disclosures
are relevant and understandable in the context of the requirements of the
applicable financial reporting framework.

14. External VS Internal Audit