MCB Bank was established in 1947 and was the first bank to be privatized in 1991. It aims to be the leading financial services provider and has a team of committed professionals providing innovative solutions. The organizational chart shows the board of directors at the top with various departments reporting up. The internal auditor ensures proper internal controls, supervises capital expenditures, and implements the yearly audit plan. A SWOT analysis identifies strengths such as its long history and being the first privatized bank, while weaknesses include a limited international branch network and lack of managerial training for some employees.

1. PRESENTED BY: Abbas Khozema Mandviwala ( id: 13210 )

2. HISTORY
 MCB Bank Limited was incorporated by the
Adamjee Group on July 9, 1947, as a limited
company.
 The bank was nationalized in 1974 during the
government of Zulfikar Ali Bhutto.
 This was the first bank to be privatized in 1991.
 The president of the bank is M.U.A Usmani.

3.  Vision Statement
To be the leading financial services
provider, partnering with our customers for
a more prosperous and secure future.
 Mission Statement
We are a team of committed professionals,
providing innovative and efficient financial
solutions to create and nurture long-term
relationships with our customers.

4. ORGANIZATIONAL CHART
Audit & RAR Wholesale
BANKING
CORPORATE
AFFAIRS
BOARD OF DIRECTORS
COMPLIANCE
& BANKINGol
RISK
MANAGEMENT
SPECIAL ASSET
MANAGEM.NT
HUMAN RESOURCE
MANAGEMENTurce
Management
INFO
TECHNOLOGYchn
ology
STRATEGIC
PLANNINGnt
Banking
FINANCIAL
CONTROL
COMMERCIAL
BANKING
Operations
CONSUMER
BANKINGing
TREASURY &
FOREXorex
ISLAMIC
BANKING
Chairman
President

5. AUDITORS MESSAGE TO HIS
MEMBERS
 We conduct our audit in accordance with the
international standards of auditing as applicable
in Pakistan.
 These standards require that we plan and
perform the audit to obtain reasonable
assurance about whether the financial
statements are free of any material
misstatement.

6. INTERNAL AUDITOR’S JOB
RESPONSIBILITIES
 Supervise control over capital expenditure.
 Implement the contents of yearly audit plan.
 Supervise assignments of assurance and
consultancy nature.
 Supervise plan amendments based on changes
in risk factors.

7. INTERNAL CONTROL
 The board of directors and audit committee is independent from
management.
 The audit committee has a charter outlining its duties and
responsibilities.
 There is an adequate supervision and monitoring of decentralized
operations.
 There is an appropriate segregation of duties.
 There are standards and procedures for hiring, training, motivating,
evaluating, promoting, compensating, transferring, and terminating
personnel that are applicable to all functional areas (e.g.,
accounting, marketing, information systems).

8.  Policies and procedures are clear and issued, updated, and
revised on a timely basis.
 Job performance is periodically evaluated and reviewed with
each employee.
 Internal audit performs a periodic risk assessment.
INTERNAL AUDITOR AT MCB BANK
 Asad Javed

9. SWOT Analysis
 STRENGTH
1. MCB is a well established bank, enjoying long
history of over 55 years of experience and
profitable operation.
2. MCB was the first privatized bank that
gives it an edge over other nationalized banks.
3. MCB is the market leader in introduction of
E-banking and it has the largest ATM network
in the country.

10.  WEAKNESS
1. The overseas branch network of MCB is limited.
It has only four overseas branches.
2. Most of the employees lack managerial training as
they are not properly educated.
OPPORTUNITY
1. MCB may enhance its Rupee Travellers Cheques
(RTCs) sales by searching for new market .
THREAT
1. The Rupee Travellers Cheque (RTC) sales
volumes may be affected on account of regulatory
restriction imposed by SBP on issuance to large
value denominations

11. TRANSACTIONAL
PROCESSIONG CYCLE
Revenue cycle:
 (It includes MCB bank sales and Accounts receivables
account).
Expenditure cycle:
 (It includes MCB bank purchases and Accounts Payable
accounts).
Finance cycle:
 (It includes requiring and allocating of funds by MCB bank).
Financial reporting cycle:
 (It is done through the software that MCB uses).

12. QUESTIONS & ANSWERS
1. Has the auditor devised an overall audit plan
identifying areas of risk?
Answer:
Yes, the auditor first assesses the MCB Bank
risk management process. Then, use the risk
assessment to develop an audit plan. Lastly,
expresses an overall opinion regarding the
quality of control designed to reduce risk.

13. 2. Does the internal auditor review the segregation of
duties?
Answer:
 Every employee and manager of MCB Bank has been
defined their role very well. Different persons are
kept for authorization, record keeping and custody of
assets.
3. Does the internal auditor examine and confirm all
investment securities?
Answer:
 Yes, internal auditor at MCB Bank confirms the
investment securities because risk is involved.

14. ACKNOWLEDGEMENT
 I would like to thank my “ Internal
Auditing and EDP Accounting” faculty,
Dr. Muhammad Mehmood , for giving
me such an interesting work.
This has been a great learning
experience for me, and I am sure it will
benefit me in future.