Internal Audit & Compliance Department    

 

Mission Statement

To provide independent, objective assurance and consulting services designed to add value, improve operations and help SBP in accomplishment of its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

Vision Statement

To transform Internal Audit & Compliance Department into a modern, efficient, proactive and I.T oriented Department, fully capable to conduct independent audit of all activities of SBP, aiming to add value, improve operational efficiency, risk management and internal control system in line with international best practices, for accomplishment of Bank’s mission.

About Us

Internal Audit & Compliance Department examines and evaluates the SBP’s framework of Risk Management, Controls, and Governance Processes to ascertain the adequacy and its proper functioning.

In addition, the objectives of Internal Audit & Compliance Department, includes advising and recommending Senior Management for improvements in internal controls and Risk Management.

IA&CD is governed through an Audit Charter which was approved in Oct 2000 and subsequently amended in Sept 2009 and July 2012.

Internal Audit & Compliance Department consists of the following Units:

a) Audit Planning & Special Assignment Unit

b) I.T Audit Unit

c) Financial & Operational Audit Units

d) Quality Assurance & Development Unit

e) Compliance & Audit Committee Affairs Unit

f) Support Services Unit

Internal Audit & Compliance Department also conducts audit of National Institute of Banking and Finance (NIBAF), a subsidiary of SBP.

Functions of Department

a) Audit Planning & Special Assignment Unit

1. Conduct review exercise for update of Audit Universe before preparation of Annual Audit Plan.

2. Carry out risk assessment for preparation of Annual Audit Plan.

3. Preparation and finalization of Annual Audit Plan and Business Plan.

4. Preparing status reports at regular frequency regarding progress of Audit Plan.

5. User Training and Support for In-House Developed AuditWare application.

6. Resolution of all issues / complaints regarding AuditWare Application.

7. Maintain backup and user management for AuditWare Application and coordinate with ISTD resolution of technical issues pertaining to AuditWare application.

8. Conduct review of Monetary Program data submitted to International Monetary Fund (IMF) at test dates for IMF.

9. Carry out any Special Assignments given by Committee of Central Board on Audit / Governor.

10. Coordinate with External and Government Auditors.

b) I.T Audit Unit.

1. Evaluates IT controls and procedures of IT systems and applications used in SBP.

2. Conduct examination of automation of various working areas of the Bank and Management Information Systems.

3. Review I.T Security System based on approved Security Framework, policies and procedures.

4. Co-ordinates and provides an adequate support to Financial and Operational Audit Teams by carrying out IT audit of the computerized business areas.

c) Financial & Operational Audit Unit (I,II,III,IV)

1. Examine and evaluate adequacy and effectiveness of the internal control systems.

2. Review and verify accounting records and financial reports.

3. Perform testing of transactions and functioning of specific internal control procedures.

4. Evaluation of adherence to legal and regulatory requirements and approved policies and procedures.

5. Identify opportunities for cost savings in Bank operations and make recommendations.

6. Examining that the resources are acquired economically, used efficiently and safeguarded adequately.

d) Quality Assurance & Development Unit

1. Conduct quality review of Audit Reports and working papers of all audit engagements, special assignments and other deliverables of IA&CD.

2. Review the completeness of information maintained in AuditWare Application for all audit engagements.

3. Conduct Internal Quality Assessment as per the requirement of the Internal Auditing Standards of The Institute of Internal Auditors (USA).

4. Coordinate and provide support for the External Quality Assessments conducted as per the requirement of the Internal Auditing Standards of The Institute of Internal Auditors (USA).

5. Research on new developments in the Internal Auditing such as change in practices, standards etc. and prepare an action plan for its implementation with approval of Director IA&CD.

6. Implementation of IIA Standards in IA&CD.

7. Review and recommend to Committee of Central Board on Audit for any changes required in the Internal Audit Charter for amendment and approval of Central Board of Directors.

8. Review and update Internal Audit Manual.

e) Compliance & Audit Committee Affairs Unit

1. Prepare periodic Risk Report for Committee of Central Board on Audit from meeting to meeting.

2. Obtain periodic compliance for the outstanding Risk Report.

3. Maintain updated inventory of audit findings and obtain compliance of cumulative outstanding audit findings.

4. Obtain compliance of External Auditor’s Management Letter and Control Deficiencies Report.

5. Status reporting of critical paras for Government Audit Report.

6. Carry out Compliance Audit of Departments not included in the current Audit Plan.

7. Maintain updated compliance related data in the AuditWare Application.

8. Facilitate implementation of AuditWare Application Compliance Module.

f) Support & Services Unit

1. Facilitation of other Divisions in administrative matters.

2. Manage the training programs.

3. Keep the ENB and SBP website updated.

4. Maintenance of record relating to administrative affairs.

5. Preparation of departmental Budget and its variance reports.

6. Maintain record of imprest account, leaves, audit reports & inward / outward communication.

7. Issue departmental orders and arrange departmental meetings.

8. Maintain record of Audit Planning Memoranda issued to Auditee Departments and also follow up the requisite information till start of audit engagement.

9. Consistent follow-up of departmental responses and arranging timely exit meetings.

10. Keep stock of fixed assets of the Department.

 


© 2003 State Bank of Pakistan. All Rights Reserved.
Disclaimer | Instructions


State Bank of Pakistan
I.I. Chundrigar Road, Karachi, Pakistan.
Phone: 092-021-24450298, Fax: (92-21) 9212440
www.sbp.org.pk