The bank auditing process

Bank auditing is a process that banks and other financial institutions have to undergo in order to confirm that all financial operations are being carried out in compliance with regulations. This is a periodic review that entails a bank auditor reviewing all banking activities to then compile a report on the financial institution.

Process of bank auditing explained

Bank auditing is a necessary procedure that banks and financial institutions must complete routinely in order to be classified as a certified institution. In order to complete the bank auditing process successfully, there are some steps that you can take;

  1. When the bank audit request is received, it is important to review it thoroughly. Taking note of time restrictions, data requirements and presentation preferences.
  2. The bank owner should request a meeting with the financial managers, executives and important accountants in order to discuss how the data will be collected and presented for the audit. This is an opportunity for brainstorming and finding the best possible method of task delegation and time management.
  3. Establishing the storage file where all information and data related to the bank audit must be maintained. It is important to make all people involved in the audit aware of this so that all data is kept in one place.
  4. All data collected must be relevant and any information that is missing should be pulled from different sources in order to ensure that all areas of the audit are covered.
  5. Checking and cross referencing all the information and data in order to make sure it is correct and concise. There should be multiple checks as any mistakes will cause the report to be erroneous.
  6. Review the audit request and ensure that the data collected corresponds with the auditor’s request.
  7. Present the finalized information in the auditor’s preferred manner.
  8. Bank owners should request an audit-compliance letter.

The process is fairly simple and helps the financial institution to maintain its standards. It is an opportunity for the staff to work together and support other departments in order to complete the audit in time.