What You Will Learn
1. How to Audit a Bank
- planning
- materiality
- risk appetite
- the risk assessment exercise
- fraud and money laundering deterrence responsibilities
- the relationship to external audit
- home/host regulation
- branch and representative office audits
- introduction to the Basel Accord
- case study/exercise: preparing a audit planning memorandum
2. Deposits and Deposit Taking
- how are banks funded
- current accounts
- deposit accounts
- retail funding
- customer identification
- the customer recording process
- payments in and out of deposits
- dormant accounts
- notice accounts
- reporting deposits
- key risk issues within deposits and deposit taking
- case study/exercise: developing an audit program for deposits and deposit taking
3. Funds Transmission and Clearing Services
- payment mediums
- bulk paper clearing
- cash and debit cards
- credit cards
- Internet banking
- ATM machines
- SWIFT and international payments
- case study/exercise: developing an audit program for funds transmission and clearing services
4. Personal Lending
- the customer
- connected lending
- overdrafts
- personal loans
- mortgage lending
- retail customer analysis
- credit scoring
- using external agencies
- knowing your customer
- the drawdown process
- reporting personal lending
- case study/exercise: developing an audit program for personal lending
5. Corporate Lending
- the customer
- connected lending
- the credit application
- rating agencies
- project finance
- structured lending
- sovereign debt
- reporting corporate lending
- case study/exercise: developing an audit program for corporate lending
6. Security and Provisioning
- introduction
- fixed charges
- floating charges
- guarantees
- mortgages
- provisioning
- case study/exercise: developing an audit program for security and provisioning
7. Trade Finance and Finance of Trade
- trade finance defined
- bills of exchange
- promissory notes
- export credits
- factoring and forfeiting
- invoice discounting
- case study/exercise: developing an audit program for trade finance and for finance for trade
8. Branch Banking
- which roles are conducted at branches
- the nature of the audit work to be conducted
- reviewing branch records
- human resources issues
- compliance issues
- reporting and management
- case study/exercise: developing an audit program for a retail bank branch
9. Private Banking
- the services of a private banker
- asset management
- offshore bank accounts
- politically exposed persons
- key risks in personal banking
- case study/exercise: developing an audit program for private banking
10. Investment Banking
- long-term finance
- venture capital
- debt financing
- underwriting
- structured finance
- due diligence processes
- documentation and liability
- income generation
- case study/exercise: developing an audit program for investment banking
11. Dealing and the Dealing Room
- the difference between the trading book and the banking book
- the deal process
- telephone dealing
- electronic dealing
- controls and the control environment
- the Basel rules on operational risk
- compliance and general conduct
- case study/exercise: developing an audit program for dealing and the dealing room
12. Foreign Exchange
- calculating foreign exchange rates
- the foreign exchange market
- the language of foreign exchange
- spot rates and cross rates
- systems of accounting
- international accounting standards
- principles of valuation
- case study/exercise: developing an audit program for foreign exchange
13. Forward Contracts
- calculating forward foreign exchange rates
- advantages and disadvantages
- positions and hedging
- spot and forward transactions
- principles of valuation
- forward rate agreements
- forward – forward contracts
- international accounting standards
- case study/exercise: developing an audit program for forward contracts
14. Futures and the Futures Market
- introduction to financial futures
- futures exchanges
- types of futures contracts
- quotation of futures contracts
- margin accounting
- confirmation and control
- case study/exercise: developing an audit program for futures and the futures market
15. Options and the Options Market
- introduction to options
- types of options contract
- premiums, margin and exercise
- option terms
- option payoffs
- confirmation and control
- case study/exercise: developing an audit program for options and the options market
16. Swaps and the Swaps Market
- interest rate swaps
- currency swaps
- credit derivatives
- weather derivatives
- advantages of swap structures
- pricing a swap
- credit risk and collateral
- ISDA documentation
- hedging and hedge accounting
- control and confirmation
- case study/exercise: developing an audit program for swaps and the swaps market |
