Financial Crime World

Business Side of Internal Audit: A Look into the Impact and Corrective Actions

The State Bank of Pakistan’s Banking Services Corporation (BSC) has undergone significant changes in its IT system and restructuring of its internal audit department to strengthen its internal audit processes.

Impact on Corporate Governance

  • The Committee of the Board on Audit has played a crucial role in ensuring corporate governance at BSC.
  • The committee held three meetings during FY10, reviewing audit reports and providing guidance on implementation.
  • The performance of Internal Audit Department remained under continuous monitoring throughout the year.

Capacity Building for Internal Auditors

  • The IAD has placed significant emphasis on training and skill development of its workforce.
  • During FY10, different training modules were developed, and training was imparted to staff members on a regular basis.
  • Opportunities were also provided for employees to attend workshops/seminars outside the bank premises. A total of 120 internal auditors participated in these programs.

Corrective Actions

The following corrective actions have been taken:

  • IT System Upgrade: The IT system upgrade aims to address the identified risks and control weaknesses.
  • Enhanced Training: The IAD will continue to provide training and skill development opportunities for internal auditors to enhance their capacity and effectiveness.
  • Regular Monitoring: The Committee of the Board on Audit will continue to monitor the performance of Internal Audit Department to ensure compliance with audit recommendations.

Conclusion

The business side of internal audit is critical in ensuring the effectiveness of an organization’s risk management and internal control systems. By understanding the impact of irregularities and taking corrective action, organizations can mitigate risks and improve their overall performance. BSC’s efforts to strengthen its internal audit processes are a step towards achieving this goal.

Note: I used markdown headings (#) and subheadings (##), as well as bullet points (*) to format the article according to your request.