Pakistan’s Financial Institution Compliance Officers Face Increased Scrutiny

The State Bank of Pakistan’s Internal Audit & Compliance Department (IACD) is taking proactive steps to ensure the effectiveness of governance, risk management, and control processes within the institution. In this article, we will explore the department’s efforts to provide independent and objective assurance on these processes.

Mission and Objectives

The primary goal of IACD is to ascertain whether the governance, risk management, and control processes are adequate and functioning properly. The department conducts financial, operational, and IT-based audits to achieve this goal. These audits focus on identifying weaknesses and recommending improvements to ensure transparency and accountability within Pakistan’s financial institutions.

Audit Process

IACD conducts regular audits of State Bank of Pakistan operations, with a dedicated team working on each type of audit. The department’s Internal Audit Charter outlines its independence and authority, ensuring that it can operate impartially. This charter is approved by the Committee of the Board on Audit.

Quality Control

To maintain quality control, IACD has established a Quality Assurance Unit (QAU) that conducts ongoing reviews of audit activities to ensure they meet international standards and best practices.

Compliance Monitoring

A dedicated Compliance Unit is responsible for monitoring the implementation of outstanding audit recommendations on a regular basis. This ensures that corrective actions are taken promptly and effectively.

Special Assignments

The internal audit function also undertakes special assignments as directed by the Governor or Audit Committee. These assignments demonstrate IACD’s commitment to ensuring transparency and accountability within Pakistan’s financial institutions.

In conclusion, the State Bank of Pakistan’s Internal Audit & Compliance Department is playing a vital role in ensuring the effectiveness of governance, risk management, and control processes within the institution. Its efforts will help maintain public trust and confidence in the country’s financial system.