ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
10
DEVELOPMENT OF INTERNAL AUDIT PLAN, PROGRAM IN BANKS AND ITS
IMPROVEMENT ON THE BASIS OF INTERNATIONAL STANDARDS
Gayibnazarova Maftuna Maqsud qizi
Bank finance academy listener.
https://doi.org/10.5281/zenodo.12656889
Abstract.
This article describes the creation of an internal audit plan and program in
commercial banks and its improvement based on international standards. In particular, taking
into account that the internal audit system has been implemented in commercial banks in different
ways, it is important to prepare optimal plans and programs for commercial banks based on
interpretive research and requires deep research. Issues such as planning of internal audit
activities, planning of audits of branches and Head Office activities, development of working
programs during audits, and adaptation of plans and programs to international standards are
covered.
Keywords:
internal audit plan; internal audit program; rating system; audit competition;
materiality in the audit; residual risks; internal control system.
РАЗРАБОТКА ПЛАНА, ПРОГРАММЫ ВНУТРЕННЕГО АУДИТА В БАНКАХ И
ЕГО СОВЕРШЕНСТВОВАНИЕ НА ОСНОВЕ МЕЖДУНАРОДНЫХ СТАНДАРТОВ
Аннотация.
В данной статье описано создание плана и программы внутреннего
аудита в коммерческих банках и его совершенствование на основе международных
стандартов. В частности, учитывая, что система внутреннего аудита была реализована
в коммерческих банках по-разному, подготовка оптимальных планов и программ для
коммерческих банков важна на основе интерпретативных исследований и требует
глубоких исследований. Освещены такие вопросы, как планирование деятельности
внутреннего аудита, планирование проверок деятельности филиалов и головного офиса,
разработка рабочих программ при проверках, адаптация планов и программ к
международным стандартам.
Ключевые слова:
план внутреннего аудита; программа внутреннего аудита;
фактор риска; план, основанный на рисках; стратегический план; оценка риска;
управление рисками; система оценок; аудиторский конкурс; существенность в аудите;
остаточные риски; система внутреннего контроля.
Today, in the process of consistent development of our country, the economic and social
contribution of banks to the development of the country is high. Banks face difficulties, risks and
shortcomings in the process of achieving their goals and protecting the interests of shareholders.
Of course, it would not be a mistake to say that the great responsibility of revealing the true
map of the bank's activity is assigned to the internal audit organized in banks. In order for the
internal audit to fulfill its tasks fully and qualitatively, it is necessary to carefully develop its plans
and programs, to meet the requirements of international standards at the time of globalization.
The main problem facing all internal auditors is the efficient allocation of limited resources,
that is, how to choose the direction of the audit. for this, it is necessary to assess the risks at the
scope of the audit.
ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
11
The purpose of the risk-based plan is to examine the major risks that may arise in the bank's
achievement of its objectives.
A strategic and annual audit plan should be developed in the process of prioritizing the
audit focus. The entire scope of work of the audit direction is called audit scope. A decision must
be made taking into account the risk level for each audit scope feature and other factors affecting
the priority level.
Strategic and annual plans are important documents presented to management. The
strategic plan provides options for conducting internal audit work and defining the advantages that
arise during the audit process. It is a showcase of what internal audit can do for management. A
strategic and annual plan should be well-structured, well-articulated, and provide management
with a solid rationale for evaluating the merits of particular areas.
A formal documented audit plan serves to achieve the following goals:
• facilitates analysis and helps the Chairman of the Board to prioritize audit areas;
• Provides the internal audit service with an effective methodology that achieves planning
and understanding of the audit approach to the analysis of risks faced in the field of activity of the
audited bank;
• eases the next audit planning process;
• assists in explaining, documenting and justifying changes to the annual plan.
In the process of drawing up the annual strategic plan of audits, the internal audit
methodology in the bank should be based on the principle of risk assessment. Thus, the Internal
Audit Service should focus on the following audited banking activities:
- there are more internal (inherent) risks (in terms of activity);
- exposed to higher risks (due to low-quality control system).
Bank activity is always subject to various changes: new types of services appear,
disruptions occur in the bank's corporate structure, bank management issues new orders, new
banking technologies appear, the Central Bank publishes new regulatory documents. All these
factors should be taken into account in the strategic plan of annual audits.
When creating an internal audit plan, a risk-based, 1-year plan is recommended in most
banks, and it is included in the internal audit regulation of banks as a mandatory content. However,
in the current trend of development, the emergence of new types of risks and the formation of new
types of operations in the financial market require the creation of a long-term strategic plan. Due
to the fact that it takes a lot of time to make changes to the one-year plan, and there is little
opportunity to counter various risks in time, the structure of a strategic plan is recommended in
the literature.
International standards do not elaborate on planning and programming, they are of a
recommendatory nature. It is necessary for each country to enrich its plans and programs without
going beyond the limits of the standards based on its economic mentality. Banks have established
internal audit services at different levels. In Uzbekistan, there is a great need for the development
of recommended plans and programs by banks to regulate the activities of the internal audit system
after carrying out scientific research.
There are methods of testing audit processes that are the basis for creating an internal audit
plan and program:
ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
12
- tests that help confirm the functioning of the internal control system (compliance audit);
- tests confirming the reliability of the balance sheet and accounting data (detailed tests
(substantive audit)).
Many Internal Audit Service audits will be in the nature of compliance audits. If the Internal
Audit Service works with an external audit, it will participate in conducting a detailed audit.
Compliance testing method
The task of these tests is to confirm the existence of internal control tools, their effective
and regular implementation by employees.
- the following audit methods are used to confirm the existence of the internal control
system:
- request information and receive explanations;
- monitoring;
- checking of attached and other documents;
- checking the current control system.
Detailed testing methods
Detailed testing allows for direct confirmation of the legality of transactions or balance
reliability.
An example of such a method is a check from the order to enter transactions into the system
to the execution of transfers on the client's account.
Detailed audit methods:
- information request and clarification;
- analytical processes;
- in-depth checking of the operation and balance in the following form:
- verification of application documents and other documents, as well as account
information;
- check material availability;
- third party verification;
- inspection of the current control system;
Inspection procedures
When developing a control audit plan, the Internal Audit Service should use the following
basic audit methods:
Questionnaire and receiving clarifications
Request for information is understood as asking for necessary information or explanations
in written or oral form from the management and employee of the department. The request for
information is made for the following purpose:
- getting to know the nature of the activity of the unit under audit;
- getting a confirmation about the reliability of system work;
- obtaining disclosures on issues considered the subject of audit, for example, decision-
making processes and the like.
The reliability and accuracy of the information obtained during the determination process
and provided by employees depends on several factors:
- form of providing information - written or oral;
ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
13
- professional competence, work experience, independence and orderliness of the employee
who gave the explanation;
- the request depends on general and specific information and the level of confirmation of
information obtained from other sources.
- as a rule, the information explained by the employees of the investigated department
requires confirmation from other sources.
Tracking
An effective way to audit is to observe various aspects of the controls in place during
system operation. This allows you to:
- evidence of the existence of existing control types that cannot be confirmed by a
document;
- evidence that other forms of control work in the experiment. The reliability of such a form
of evidence requires auditors not only to observe the operation of the system, but also to interview
each employee based on the job description;
- confirmation of availability, quality and condition of bank assets.
Although evidence of the existence and operation of internal controls obtained through the
observation method is considered objective, the existence and application of the internal control
system is confirmed only when the auditors are physically present. Therefore, according to the
rule, additional verification of the evidence obtained on the basis of the observation method, which
confirms that the internal control system worked continuously and regularly during the entire audit
period, is carried out.
Analytical methods
Analytical processes mean studying and evaluating data by comparing it with other
information related to the audit object. Analytical methods are used only when it is expected that
there is a correlation between individual indicators. For example, if the margin percentage remains
the same regardless of the volatility of the margin percentage, it is a prerequisite for the use of
analytical processes.
Analytical methods are used to study and compare financial and non-financial data, as well
as compare plan and actual figures. Different forms of analysis can be grouped as follows.
General testing for correctness and accuracy – using information from external and internal
sources to evaluate a balance or amount for reliability. For example, the interest charged on a
customer's account balance can be roughly calculated based on the average monthly balance and
the average monthly interest rate, and then the theoretical and practical accrued interest can be
compared.
Trend analysis is the analysis of comparable data over a period of time to identify periods
that do not follow a common trend.
Ratio analysis is an analysis of the relationship between two or three financial indicators.
For example, the analysis of wage costs depending on the number of employees. The
coefficient analysis loses its significance if it is compared for a certain period of time (for example,
by the method of trend analysis).
Business analysis is an assessment of the level of reliability and validity of certain financial
information based on personal knowledge of business characteristics and banking products.
ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 6 / UIF:8.2 / MODERNSCIENCE.UZ
14
The success of the application of analytical methods during the audit and the usefulness of
the obtained results depend on several factors:
- the possibility to get clarifications about exceptions and trends from the general rule;
- internal auditors have a deep and sufficient understanding of the features of this
department's work in order to be able to understand the future and give an independent assessment
of the coefficient, trend and other information with a deep enough understanding;
- the reliability of the data used as a preliminary in conducting the audit.
Analytical methods lose their effectiveness under conditions of high inflation, except for
cases where the basic inflation index is used as one of the variables in the calculations.
In general, the internal audit plan and programs of commercial banks are considered
commercial secrets. In particular, the internal audit plan is known only to the Chairman of the
Board and the chief auditor of the bank. The main reason is that branch cash registers are suddenly
checked during internal audits. This action is carried out to assess the real state of the branch office.
Since the internal audit plan is considered a secret, the data and figures were used in this
dissertation in a modified form without breaking their proportions. About a thousand indicators
were taken in all areas to form an internal audit plan. Since these indicators were formed almost
two years ago, it was not possible to obtain data from previous years. Based on these indicators, a
rating is determined for a branch or a specific bank line, and their risk is assessed, and the sequence
of checks is determined.
In addition, unaccounted income and excess expenses for the bank branch are also
important for determining the branch rating. In addition to the fact that they are detected, attention
is paid to whether they were recovered or covered during the monitoring process.
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Мелиев И. (2017) “Аудитни режалаштириш: муаммо ва ечимлар” Бизнес-эксперт,
№6(114)-2017.
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Монастырная М (2008) “Порядок проведения внутреннего аудита в банке” Главный
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