RESPONSIBILITIES AND SCOPE
The Internal Audit and Compliance function should provide the company’s management with assurance that the controls, which govern the company’s activities and its computer systems and operations, are properly conceived and are being effectively administered. When ineffective, inefficient and uneconomical practices are identified during an audit, suggestions should be made to management on how to improve upon the observed areas of weaknesses.
The primary duties of the Internal Audit and Compliance Department are as follows:
- Appraise the adequacy and effectiveness of the bank’s internal control structure set up for banking operations and computer systems as well as other operations located throughout the organization.
- Review the established organizational systems, banking operations, computer systems and other operations of the bank, to ensure compliance with policy, and identify circumstances in which policy, procedures or standard needs to be defined, clarified of eliminated.
- Review structures in place for safeguarding the bank’s assets.
- Appraise the economy and efficiency, with which resources are employed, identify opportunities to improve operating performance, and recommend solutions to problems where appropriate.
- Review banking and computer systems, operational plans and programmes to ascertain whether results are consistent with established objectives and goals and whether the plans, operations and procedures are being carried out as intended.
- Conduct periodic visits to processing and computer centers to ascertain whether the general control environment is adequate.
- Conduct periodic audits of physical security over assets and computer facilities; evaluate the adequacy of the logical security access and environmental controls to assure continuity of operations.
- Review the company’s strategic, tactical and operational planning process for adequacy, consistency and congruence with the company’s corporate mission.
- Be alert to the potential for fraud, theft, embezzlement, defalcation and misappropriation of assets during the performance of audits.
- Prepare both long range and short-term audit plans for review and approval by the Managing Director.
- Perform special investigation and computer related reviews as requested by senior management or Board of Directors.
- Report significant audit and control issues to management and the Board Audit Committee for their consideration.
- Evaluate any plans or actions taken to correct reported exceptions for the satisfactory disposal of audit findings. If the corrective action planned or taken is considered unsatisfactory, hold further discussions to achieve an acceptable disposition.
- Perform adequate follow up to make sure that corrective action is taken and that it is effective.
- Monitor compliance with the rendition of statutory returns
- Monitor compliance with statutory guidelines.
- Management of the company’s interfaces with law enforcement agencies
- Monitor compliance with limits specified by management for dealing with other parties on all products, services and expenses, etc.
- Management of external auditors, CBN, NDIC and FIRS examiners.
- Identify potential areas of income leakage and recommend action plan to block them.
- Check that accounting records are valid, complete and accurate and comply with industry and standard accounting practice.